Agenda packet — Ontario City Council, March 18, 2025 (part 1 of 28)

CITY OF ONTARIO
Regular City Council/Housing Authority
Meeting
MARCH 18, 2025
City Hall
303 East B Street, Ontario, CA 91764
MAYOR PAUL S. LEON • MAYOR PRO TEM ALAN D. WAPNER
COUNCIL MEMBERS JIM W. BOWMAN, DEBRA PORADA AND DAISY MACIAS CITY CLERK SHEILA MAUTZ • TREASURER JAMES R. MILHISER
CITY MANAGER SCOTT OCHOA • CITY ATTORNEY RUBEN DURAN

WELCOME TO A MEETING OF THE ONTARIO CITY COUNCIL
All documents for public review are on file with the Records Management/City Clerk's Department located at 303 East B Street, Ontario, CA 91764.

Anyone wishing to speak in person during public comment or on a particular item will be required to fill out a blue slip. Blue slips must be turned in prior to public comment beginning or before an agenda item is taken up. The Clerk will not accept blue slips after that time. To comment by email, submit your comments no later than 4:00 p.m. on the day of the meeting by emailing your name, agenda item you are commenting on and your comments to [email protected]. All comments received by the deadline will be forwarded to the City Council for consideration before action is taken on the matter and will be entered into the record.

Speakers will be alerted when they have 1 minute remaining and when their time is up. Speakers are then to return to their seats and no further comments will be permitted.

In accordance with State Law, remarks during public comment are to be limited to subjects within Council's jurisdiction. Remarks on other agenda items will be limited to those items.

Remarks from those seated or standing in the back of the chamber will not permitted. All those wishing to speak including Council and Staff need to be recognized by the Chair before speaking.

CITY OF ONTARIO Regular City Council/Housing Authority Meeting CITY HALL 303 EAST B STREET, ONTARIO CA 91764 • www.OntarioCA.gov 1 ATTACHMENT: 20250318 Closed Session

ACCOMMODATIONS
If you need special assistance or accommodations to participate in this meeting, please contact the City Clerk's office at 909-395-2009. Notification of 48 hours prior to the meeting will help the City make reasonable arrangements. Equipment for the hearing impaired is available in the Records Management Office.

ORDER OF BUSINESS
The regular City Council and Housing Authority meeting begins with Closed Session and Closed Session Comment at 6:00 p.m., Public Comment at 6:30 p.m. immediately followed by the Regular Meeting and Public Hearings. No agenda item will be introduced for consideration after 10:00 p.m. except by majority vote of the City Council.

CALL TO ORDER (OPEN SESSION)

ROLL CALL
Wapner, Bowman, Porada, Macias, Mayor/Chairman Leon

CLOSED SESSION PUBLIC COMMENT
The Closed Session Public Comment portion of the Council/Housing Authority meeting is limited to matters appearing on the Closed Session. Additional opportunities for further Public Comment will be given during and at the end of the meeting.

CLOSED SESSION
GC 54956.9(d)(1), CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION City of Ontario, et al. v. Inland Empire Utilities Agency, Orange County Superior Court Case No. 30- 2023-01344236-CU-WM-CJC
GC 54956.9(d)(1), CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION City of Ontario, et al. v. Inland Empire Utilities Agency, Los Angeles Superior Court Case No. 24STCP02321

PLEDGE OF ALLEGIANCE
Council Member Porada

INVOCATION
CITY OF ONTARIO Regular City Council/Housing Authority Meeting CITY HALL 303 EAST B STREET, ONTARIO CA 91764 • www.OntarioCA.gov 2 Pastor Richard Hernandez, The Church of God

REPORT ON CLOSED SESSION
City Attorney
PUBLIC COMMENTS 6:30 P.M.

The Public Comment portion of the Council/Housing Authority meeting is limited to 30 minutes.

An opportunity for further Public Comment may be given at the end of the meeting. Under provisions of the Brown Act, Council is prohibited from taking action on oral requests.

To comment by email, submit your comments by email no later than 4:00 p.m. on the day of the meeting by emailing your name, agenda item you are commenting on and your comment to [email protected]. All Comments received by the deadline will be forwarded to the City Council for consideration before action is taken on the matter and entered into the record. As previously noted -- if you wish to address the Council, fill out one of the blue slips at the rear of the chambers and give it to the City Clerk.

AGENDA REVIEW/ANNOUNCEMENTS
The City Manager will go over all updated materials and correspondence received after the Agenda was distributed to ensure Council Members have received them. He will also make any necessary recommendations regarding Agenda modifications or announcements regarding Agenda items to be considered.

INFORMATION RELATIVE TO POSSIBLE CONFLICT OF INTEREST
Agenda item contractors, subcontractors and agents may require member abstentions due to conflict of interests and financial interests. Council Member abstentions shall be stated under this item for recordation on the appropriate item.

CONSENT CALENDAR
All matters listed under CONSENT CALENDAR will be enacted by one motion in the form listed below – there will be no separate discussion on these items prior to the time Council votes on them, unless a member of the Council requests a specific item be removed from the Consent Calendar for a separate vote.

CITY OF ONTARIO Regular City Council/Housing Authority Meeting CITY HALL 303 EAST B STREET, ONTARIO CA 91764 • www.OntarioCA.gov 3 1. APPROVAL OF MINUTES
ATTACHMENT: 20250218 Meeting Minutes (Not Official Until Approved) ATTACHMENT: 20250220 C Minutes (Not Official Until Approved).docx

2. BILLS & PAYROLL

3. A DEVELOPMENT IMPACT FEE CREDIT AGREEMENT (FILE NO. PDIF24-001) BETWEEN THE CITY OF ONTARIO AND AG EHC II (LEN) CA 3, L.P. FOR FACILITY CONSTRUCTION ASSOCIATED WITH TRACT MAP 20536 (FILE NO. PMTT22-021), LOCATED 875 FEET SOUTH

OF THE INTERSECTION OF RIVERSIDE DRIVE AND ARCHIBALD AVENUE, WITHIN THE

COUNTRYSIDE SPECIFIC PLAN
ATTACHMENT: 20250318 PDIF24-001 AG EHC II (LEN) CA 3, L.P.

4. FY 2024-25 MID-YEAR BUDGET UPDATE
ATTACHMENT: Reimbursement Resolution Declaring Intention to Issue Bonds 02^RESO^RM
ATTACHMENT: Purchasing Policy_FSA-002_March 2025 (002).pdf ATTACHMENT: FY 2024-25 Mid Year Budget Update Report_EXHIBIT A.pdf

5. A CONSTRUCTION CONTRACT WITH C.I. SERVICES, INC. FOR THE ARMSTRONG

COMMUNITY CENTER ROOF REPLACEMENT PROJECT
Minutes for the regular meetings of the City Council and Housing Authority of February 18, 2025, and cancelled special meeting/study session of February 20, 2025, and approving same as on file in the Records Management Department.

Bills February 14, 2025 through February 27, 2025, and Payroll January 26, 2025 through February 8, 2025.

That the City Council authorize the City Manager to execute the Development Impact Fee Credit Agreement (File No. PDIF24-001) between the City of Ontario and AG EHC II (LEN) CA 3, L.P., for facility construction associated with Tract Map 20536 (File No. PMTT22-021), located 875 feet south of the intersection of Riverside Drive and Archibald Avenue, within the Countryside Specific Plan, and authorize the City Manager to execute the Agreement.

That the City Council take the following actions:

A. Approve the budget adjustments and recommendations as presented in the Fiscal Year 2024-25 Mid-Year Budget Update Report (Exhibit A);
B. Consider and adopt a Resolution making a declaration of intent to issue tax-exempt obligations; and
C. Approve the updated Purchasing Policies and Procedures Manual

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, REGARDING ITS INTENTION TO ISSUE TAX-EXEMPT OBLIGATIONS.

That the City Council take the following actions:

CITY OF ONTARIO Regular City Council/Housing Authority Meeting CITY HALL 303 EAST B STREET, ONTARIO CA 91764 • www.OntarioCA.gov 4 ATTACHMENT: CI Services Inc Contract rev 2.25.25.pdf

6. AN AMENDMENT TO A MAINTENANCE SERVICES AGREEMENT WITH BAY ALARM COMPANY

FOR BURGLARY ALARM SERVICES
ATTACHMENT: Bay Alarm Co Amendment No. 11.pdf

7. AMENDMENTS TO THE DESIGN SERVICES AGREEMENT WITH HMC ARCHITECTS FOR THE

ONTARIO WELLNESS CAMPUS PROJECT AND THE ONTARIO ARENA PLAZA PROJECT ATTACHMENT: HMC Architects- Amendment No. 1.pdf
ATTACHMENT: HMC Architects- Amendment No. 2.pdf

8. AUTHORIZE THE PURCHASE AND INSTALLATION OF CHARGEPOINT ELECTRIC VEHICLE CHARGERS WITH BODEV, INC. FOR THE PROFESSIONAL BASEBALL STADIUM,

PROFESSIONAL BASEBALL STADIUM PARKING STRUCTURE, AND THE ONTARIO SPORTS EMPIRE
A. Authorize the City Manager, or his designee, to execute Construction Contract No.

D&C22-014 with C.I. Services, Inc., of Mission Viejo, California, for the Armstrong Community Center Roof Replacement Project in the amount of $681,200 and authorize a 10% contingency of $68,120 for a total not-to-exceed contract amount of $749,320; and B. Authorize the City Manager, or his designee, to execute all documents required for the completion of the project including, but not limited to, contracts, agreements, assessments, easements, reduction of retention accounts, and filing a notice of completion at the conclusion of all construction related activities.

That the City Council approve and authorize the City Manager, or his designee, to execute Amendment No. 11 to the Maintenance Services Agreement with Bay Alarm Company, of Concord, California, for a total not-to-exceed amount of $1,530,547, for the alarm system upgrade, and a term to June 30, 2025.

That the City Council take the following actions:

A. Authorize the City Manager, or his designee, to execute Amendment No. 1 to the Design Services Agreement with HMC Architects, of Ontario, California, to provide On-Call Architectural, Space Planning, and Engineering Design Services for the D&C24-017 Ontario Wellness Campus Project in the amount of $5,377,587 for a total not-to-exceed contract amount of $5,577,587, and
B. Authorize the City Manager, or his designee, to execute Amendment No. 2 to the Design Services Agreement with HMC Architects, of Ontario, California, to provide On-Call Architectural, Space Planning, and Engineering Design Services for the Ontario Arena Plaza Project in the amount of $1,098,740 for a total not-to-exceed contract amount of $6,676,327; and
C. Authorize the City Manager or his designee, to execute all documents required for the completion of the project including, but not limited to, contracts, agreements, assessments, easements, reduction of retention accounts and filing a notice of completion at the conclusion of all construction related activities.

CITY OF ONTARIO Regular City Council/Housing Authority Meeting CITY HALL 303 EAST B STREET, ONTARIO CA 91764 • www.OntarioCA.gov 5 ATTACHMENT: ChargePoint- Sourcewell Contract.pdf
ATTACHMENT: BodEV Inc.- Goods and Services Agreement

9. A CONSTRUCTION CONTRACT WITH TFN ARCHITECTURAL SIGNAGE, INC. FOR SIGNAGE AT

THE ONTARIO PROFESSIONAL BASEBALL STADIUM
ATTACHMENT: TFN Architectural Signage Inc.- Construction Contract.pdf

10. AWARD A CONSTRUCTION CONTRACT TO MCCARTHY BUILDING COMPANIES, INC. FOR

DESIGN-BUILD CONSTRUCTION SERVICES FOR THE VINEYARD PARKING STRUCTURE

PROJECT
That the City Council take the following actions:

A. Authorize a cooperative purchase agreement for D&C23-011 Professional Baseball Stadium with BodEV, Inc., of La Habra, California, for the purchase and installation of ChargePoint electric vehicle (EV) chargers for the Professional Baseball Stadium, Professional Stadium Parking Structure, and the Ontario Sports Empire in the amount of $1,189,758 plus a contingency amount of $119,000 for a total contract amount not-toexceed $1,308,758 consistent with the terms and conditions of the Sourcewell Contract Number 042221-CPI; and
B. Authorize the City Manager or his designee to execute all documents required for the completion of the project including, but not limited to agreements, assessments, easements, reduction of retention accounts, contracts amendments within the authorization limits, and filing a notice of completion at the conclusion of all construction related activities.

That the City Council take the following actions:

A. Authorize the City Manager, or his designee, to execute a Construction Contract with TFN Architectural Signage, Inc., of Placentia, California, to provide signage for Bid No. 1878 - D&C23-011 – Professional Baseball Stadium (Rebid of BC20) in the amount of $1,816,695 and authorize a contingency of $363,339 for a total not-to-exceed contract amount of $2,180,034; and
B. Authorize the City Manager or his designee to execute all documents required for the completion of the project including, but not limited to, contracts, agreements, assessments, easements, reduction of retention accounts, and filing a notice of completion at the conclusion of all construction related activities.

That the City Council take the following actions:

A. Authorize the City Manager, or his designee, to execute a Construction Contract with McCarthy Building Companies, Inc., of Newport Beach, California, to provide design-build construction services for the Vineyard Parking Structure in the amount of $24,990,042 and authorize a contingency of $3,748,506 for a total not-to-exceed contract amount of $28,738,548;
B. Authorize the City Manager, or his designee, to execute all documents required for the completion of the project including, but not limited to agreements, assessments, CITY OF ONTARIO Regular City Council/Housing Authority Meeting CITY HALL 303 EAST B STREET, ONTARIO CA 91764 • www.OntarioCA.gov 6 ATTACHMENT: Vineyard Parking Structure Contract- McCarthy rev 2.25.25.pdf

11. AUTHORIZE A SOLE SOURCE PURCHASE WITH FIRE APPARATUS SOLUTIONS FOR TWO (2)

NEW KME FIRE PUMPERS
ATTACHMENT: Agreement- FAS.pdf

12. A MAINTENANCE SERVICES AGREEMENT WITH HYDROLOGICS, INC. FOR ON-CALL ZERO

DISCHARGE FLUSHING SERVICES
ATTACHMENT: 20250318 MSA with Hydrologics^04 AGTM.pdf

13. A DESIGN SERVICES AGREEMENT WITH TRIAD CONSULTING AND SYSTEM DESIGN GROUP

LLC FOR SITE SECURITY IMPROVEMENTS
ATTACHMENT: 20240318 DSA^03 AGMT.pdf

14. AN ORDINANCE AMENDING CHAPTERS 8B AND 8C OF TITLE 6 OF THE ONTARIO

MUNICIPAL CODE RELATED TO WATER SERVICES AND RECYCLED WATER, AND ESTABLISHING CHAPTERS 8D AND 8E TO TITLE 6 OF THE ONTARIO MUNICIPAL CODE

RELATED TO POTABLE WATER FACILITIES AND CROSS-CONNECTION CONTROL easements, lot line adjustments, reduction of retention accounts, contracts and contract amendments within the authorization limits, and filing a notice of completion at the conclusion of all construction related activities.

That the City Council authorize the sole source purchase and delivery of two (2) new KME K180 Fire Pumpers from Fire Apparatus Solutions of Rialto, California, in the amount of $1,996,979 plus a 5% contingency in the amount of $99,849 for a total not-to-exceed amount of $2,096,828.

That the City Council approve and authorize the City Manager, or designee, to execute a oneyear Maintenance Services Agreement with Hydrologics, Inc., of Bosque Farms, New Mexico, for On-Call Zero Discharge Flushing Services in the amount of $600,000 from March 18, 2025 to March 17, 2026, with the option to extend the Agreement for up to four successive one-year periods for a total not-to-exceed amount of $3,000,000.

That the City Council approve and authorize the City Manager, or designee, to execute a Design Services Agreement with Triad Consulting & Systems Design Group LLC, of Corona, California for design and bid support services for Site Security Improvements for a total amount of $935,904, plus a 15% contingency of $140,386, for a total not-to-exceed amount of $1,076,290, and a term from March 18, 2025 to September 18, 2028.

That the City Council adopt an Ordinance amending Chapters 8B and 8C of Title 6 of the Ontario Municipal Code related to water services and recycled water, and establishing Chapters 8D and 8E to Title 6 of the Ontario Municipal Code related to potable water facilities and cross-connection control.

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, AMENDING, REORGANIZING, AND RECODIFYING CHAPTER 8B OF TITLE 6 OF THE ONTARIO MUNICIPAL CODE PERTAINING TO WATER SERVICES, AMENDING AND RECODIFYING CHAPTER 8C OF TITLE CITY OF ONTARIO Regular City Council/Housing Authority Meeting CITY HALL 303 EAST B STREET, ONTARIO CA 91764 • www.OntarioCA.gov 7 ATTACHMENT: Ordinance FINAL 01^ORD^RM
ATTACHMENT: 20250304 Exhibit A Chapter 8B FINAL.pdf
ATTACHMENT: 20250304 Exhibit B Chapter 8C FINAL.pdf
ATTACHMENT: 20250304 Exhibit C Chapter 8D FINAL.pdf
ATTACHMENT: 20250304 Exhibit D Chapter 8E FINAL.pdf

15. AN AMENDMENT TO THE PROFESSIONAL SERVICES AGREEMENT WITH WINDSONG PRODUCTIONS, LLC. FOR VIDEO PRODUCTION SERVICES
ATTACHMENT: Windsong_-_Amendment_No._4.pdf

16. A RESOLUTION OF INTENTION TO RENEW THE GREATER ONTARIO TOURISM MARKETING

DISTRICT
ATTACHMENT: Renewal MDP GOTMD Attachment 1
ATTACHMENT: ROI GOTMD 02^RESO^RM

17. A PUBLIC HEARING TO CONSIDER AN ORDINANCE APPROVING A DEVELOPMENT CODE AMENDMENT, FILE NO. PDCA24-001, TO IMPLEMENT OBJECTIVE DEVELOPMENT AND

DESIGN STANDARDS
6 OF THE ONTARIO MUNICIPAL CODE PERTAINING TO RECYCLED WATER USE, ENACTING CHAPTER 8D OF TITLE 6 OF THE ONTARIO MUNICIPAL CODE PERTAINING TO POTABLE WATER FACILITIES, AND ENACTING CHAPTER 8E OF TITLE 6 OF THE ONTARIO MUNICIPAL CODE

PERTAINING TO CROSS-CONNECTION CONTROL AND FINDING THE ACTION EXEMPT FROM CEQA.

That the City Council authorize the City Manager, or his designee, to execute Amendment No. 4 to the Professional Services Agreement with Windsong Productions, LLC., of Fresno, California, for video production services in the amount of $619,544 for a total not-to-exceed amount of $1,727,380 and to extend the term of the agreement to June 30, 2026.

That the City Council adopt a Resolution of Intention to renew the existing Greater Ontario Tourism Marketing Plan.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, DECLARING ITS

INTENTION TO RENEW THE GREATER ONTARIO TOURISM MARKETING DISTRICT (GOTMD) AND

FIXING THE TIME AND PLACE OF A PUBLIC MEETING AND A PUBLIC HEARING THEREON AND GIVING NOTICE THEREOF.

PUBLIC HEARINGS
Pursuant to Government Code Section 65009, if you challenge the City’s zoning, planning or any other decision in court, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice, or in written correspondence delivered to the City Council at, or prior to the public hearing. Affidavits of posting compliance, for all items below, are on file with the Records Management Department.

CITY OF ONTARIO Regular City Council/Housing Authority Meeting CITY HALL 303 EAST B STREET, ONTARIO CA 91764 • www.OntarioCA.gov 8 ATTACHMENT: 20250318 File No. PDCA24-001 PC Back-up.pdf ATTACHMENT: 20250318 PDCA24-001 ODDS DCA 02^ORD^RM
ATTACHMENT: 20250318 PDCA24-001 ODDS DCA^03 ATTACH A ODDS & Checklist.pdf

18. A PUBLIC HEARING TO CONSIDER AN ORDINANCE APPROVING A DEVELOPMENT CODE AMENDMENT, FILE NO. PDCA24-004, REGARDING ACCESSORY DWELLING UNITS AND

JUNIOR ACCESSORY DWELLING UNITS
ATTACHMENT: 20250318 File No PDCA24-004 PC Back-up.pdf
ATTACHMENT: 20250318 File No PDCA24-004 ADU Update 02^ORD^RM ATTACHMENT: 20250318 File No PDCA24-004 ADU Update ^03 ORD-Attachment A.docx
ATTACHMENT: 20250318 File No PDCA24-004 ADU Update ^04 Dev Code Text

5.03.010 - rev.pdf

19. A PUBLIC HEARING TO CONSIDER THE ADOPTION OF AN ORDINANCE APPROVING A DEVELOPMENT AGREEMENT (FILE NO. PDA22-004) BETWEEN THE CITY OF ONTARIO AND That the City Council introduce and waive further reading of the Ordinance Approving File No.

PDCA24-001, a Development Code Amendment, amending the Reference document section of the City's Development Code, to implement Objective Development and Design Standards for multiple-family and mixed-use residential development.

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, APPROVING FILE NO PDCA24-001, A DEVELOPMENT CODE AMENDMENT AMENDING THE REFERENCE

DOCUMENT SECTION OF THE CITY'S DEVELOPMENT CODE, TO IMPLEMENT OBJECTIVE

DEVELOPMENT AND DESIGN STANDARDS FOR MULTIPLE-FAMILY AND MIXED-USE RESIDENTIAL DEVELOPMENT AND MAKING FINDINGS IN SUPPORT THEREOF.

That the City Council open the public hearing, receive public testimony, close the public hearing, and by motion:

A. Find that the adoption of the proposed Ordinance is statutorily exempt from review under the California Environmental Quality Act (“CEQA”) under Public Resources Code section 21080.17; and
B. Consider and adopt an Ordinance upholding the recommendation of the Planning Commission approving the Development Code Amendment (File No. PDCA24-004), pursuant to the facts and reasons contained in the staff report and Ordinance.

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, APPROVING A DEVELOPMENT CODE AMENDMENT, FILE NO. PDCA24-004, AMENDING DIVISION 5.03 & SUPPLEMENTAL LAND USE REGULATIONS, SECTION 5.03.010 OF THE CITY'S DEVELOPMENT

CODE RELATING TO ACCESSORY DWELLING UNITS AND JUNIOR ACCESSORY DWELLING UNITS

IN THE CITY, AND FINDING THE ACTION TO BE STATUTORILY EXEMPT FROM CEQA UNDER PUBLIC RESOURCES CODE § 21080.17, AND MAKING FINDINGS IN SUPPORT THEREOF.

CITY OF ONTARIO Regular City Council/Housing Authority Meeting CITY HALL 303 EAST B STREET, ONTARIO CA 91764 • www.OntarioCA.gov 9 ROSEVILLE INVESTMENTS, LLC AND AMERICAN SUPERIOR LAND, LLC.

ATTACHMENT: File No. PDA22-004_Richland Developers Inc.^01 EXH A&B.pdf ATTACHMENT: File No. PDA22-004 Richland Developers Inc. 02^ORD^RM ATTACHMENT: File No. PDA22-004_ Richland Developers Inc.^03^DEV_AGR.docx ATTACHMENT: 20250318 File No. PDA22-004 PC Back-up.pdf

20. A PUBLIC HEARING TO CONSIDER AN AMENDMENT TO THE AVENUE SPECIFIC PLAN, FILE NO. PSPA22-005
That the City Council introduce and waive further reading of an Ordinance Approving a Development Agreement (File No. PDA22-004) between the City of Ontario and Roseville Investments, LLC and American Superior Land, LLC.

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, FILE NO.

PDA22-004, A DEVELOPMENT AGREEMENT BETWEEN THE CITY OF ONTARIO AND, ROSEVILLE

INVESTMENTS, LLC AND AMERICAN SUPERIOR LAND, LLC, TO ESTABLISH THE TERMS AND CONDITIONS ASSOCIATED WITH TENTATIVE TRACT MAP 20526 (FILE NO. PMTT22-012),

LOCATED AT THE SOUTHEAST CORNER OF HAVEN AVENUE AND RIVERSIDE DRIVE, WITHIN PLANNING AREAS 1A, 1B, AND 1C OF THE RICH-HAVEN SPECIFIC PLAN (FILE NO. PSP05-004). (APNS: 0218-161-11, 0218-161-04, 0218-161-05, AND 0218-161-10).

That the City Council consider and adopt:

A. Resolution approving the use of an Addendum to The Ontario Plan 2050 Supplemental Environmental Impact Report (TOP 2050 SEIR);
B. Resolution approving File No. PSPA22-005, an Amendment to the Avenue Specific Plan to: 1) modify the land use designation of Planning Area 4 and apply density modifications to Planning Areas 1B, 2A, 3B, and 5 for consistency with the Ontario Plan 2050 land use plan; 2) apply general modifications throughout the document for clarity; and 3) make exhibit and text updates throughout the document to support the project, for land located at the northwest corner of Archibald Avenue and Ontario Ranch Road.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, APPROVING AN ADDENDUM TO THE ONTARIO PLAN 2050 SUPPLEMENTAL ENVIRONMENTAL IMPACT REPORT,

PURSUANT TO THE REQUIREMENTS OF THE CALIFORNIA ENVIRONMENTAL QUALITY ACT, AS AMENDED, FOR FILE NO. PSPA22-005.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, APPROVING FILE NO. PSPA22-005, AN AMENDMENT TO THE AVENUE SPECIFIC PLAN TO: 1) MODIFY THE LAND USE DESIGNATION OF PLANNING AREA 4 AND APPLY DENSITY MODIFICATIONS TO PLANNING AREAS 1B, 2A, 3B, AND 5 FOR CONISTENCY WITH THE ONTARIO PLAN 2050 LAND USE PLAN; 2) APPLY GENERAL MODIFICATIONS THROUGHOUT THE DOCUMENT FOR CLARITY; AND, 3) MAKE

EXHIBIT AND TEXT UPDATES THROUGHOUT THE DOCUMENT TO SUPPORT THE PROJECT, FOR

LAND LOCATED AT THE NORTHWEST CORNER OF ARCHIBALD AVENUE AND ONTARIO RANCH ROAD, AND MAKING FINDINGS IN SUPPORT THEREOF—APNS: 0218-191-04; 0218-191-14; 0218-191-15; 0218-191-16; 0218-191-05; 0218-191-22; 0218-191-20.

CITY OF ONTARIO Regular City Council/Housing Authority Meeting CITY HALL 303 EAST B STREET, ONTARIO CA 91764 • www.OntarioCA.gov 10 ATTACHMENT: File No. PSPA22-005 The Avenue CC^02 Attach A - AR Exhibits.docx ATTACHMENT: File No. PSPA22-005 The Avenue CC^01 PC Back-up.pdf ATTACHMENT: File No. PSPA22-005 The Avenue CC Attach B Addend 03^RESO^RM ATTACHMENT: File No. PSPA22-005 The Avenue CC^04 Attach B - Addend Reso - Attach A - Addend Doc.pdf
ATTACHMENT: File No. PSPA22-005 The Avenue CC Attach C PSPA22-005 05^RESO^RM ATTACHMENT: File No. PSPA22-005 The Avenue CC^06 Attach C - PSPA22-005 Reso - Attach A - SPA.pdf
ATTACHMENT: File No. PSPA22-005 The Avenue CC^07 Attach C - PSPA22-005 Reso - Attach B - COAs.docx

21. A PUBLIC HEARING TO CONSIDER AN ADDENDUM TO THE ONTARIO PLAN 2050 SUPPLEMENTAL ENVIRONMENTAL IMPACT REPORT; TWO ORDINANCES APPROVING A DEVELOPMENT AGREEMENT (FILE NO. PDA23-005) BETWEEN THE CITY OF ONTARIO AND

DIVERSIFIED PACIFIC DEVELOPMENT GROUP, LLC IN CONJUNCTION WITH THE EMPIRE GROVES SPECIFIC PLAN (FILE NO. PSP23-001); AND A RESOLUTION FOR A DEVELOPMENT PLAN (FILE NO. PDEV23-039)
That the City Council consider and waive further reading of:

A. A Resolution approving the use of an Addendum to The Ontario Plan 2050 Supplemental Environmental Impact Report (State Clearinghouse No. 2021070364, certified by the City Council on August 16, 2022);
B. An Ordinance for a Development Agreement (File No. PDA23-005) between the City of Ontario and Diversified Pacific Development Group, LLC and the Empire Groves Specific Plan (File No. PSP23-001) to establish terms and conditions for the associated Development Plan (File No. PDEV23-039);
C. An Ordinance for the Empire Grove Specific Plan (File No. PSP23-001 to establish the Land Use District, development standards, guidelines, and infrastructure improvements); and
D. A Resolution approving Development Plan (File No. PDEV23-039) to construct 600,000 SF hotel and commercial building consisting of 600 rooms.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, APPROVING AN ADDENDUM TO THE ONTARIO PLAN 2050 SUPPLEMENTAL ENVIRONMENTAL IMPACT REPORT,

PURSUANT TO THE REQUIREMENTS OF THE CALIFORNIA ENVIRONMENTAL QUALITY ACT, AS AMENDED, FOR FILE NO. PSP23-001.

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, APPROVING FILE NO. PDA23-005, A DEVELOPMENT AGREEMENT BETWEEN THE CITY OF ONTARIO AND

DIVERSIFIED PACIFIC DEVELOPMENT GROUP, LLC, TO ESTABLISH THE TERMS AND CONDITIONS ASSOCIATED WITH A DEVELOPMENT PLAN (FILE NO. PDEV23-039), FOR A 10.43 ACRE

PROPERTY LOCATED ON THE SOUTHEAST CORNER OF GUASTI ROAD AND HOLT BOULEVARD WITHIN THE PROPOSED PA1 (HOSPITALITY MIXED-USE) DISTRICT OF THE EMPIRE GROVES SPECIFIC PLAN, AND MAKING FINDINGS IN SUPPORT THEREOF—APN: 110-322-33.

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, APPROVING CITY OF ONTARIO Regular City Council/Housing Authority Meeting CITY HALL 303 EAST B STREET, ONTARIO CA 91764 • www.OntarioCA.gov 11 ATTACHMENT: 20250318 File No. PDA23-005_PSP23-001_PDEV23-039 PC Back-up.pdf ATTACHMENT: File No. PDA23-005 PSP23-001 EmpireGrovesSP Addendum 01^RESO^RM
ATTACHMENT: 20250318 File No. PDA23-005_PSP23-001_EmpireGrovesSP ^02 Attach A Addendum.pdf
ATTACHMENT: 20250318 File No. PDA23-005 PSP23-001 EmpireGrovesSP DA 03^ORD^RM
ATTACHMENT: 20250318 File No. PDA23-005_PSP23-001_EmpireGrovesSP ^04 Attach A DA.doc
ATTACHMENT: 20250318 File No. PDA23-005 PSP23-001 EmpireGrovesSP 05^ORD^RM
ATTACHMENT: 20250318 File No. PDA23-005_PSP23-001_EmpireGrovesSP ^06 Attach A SP.pdf
ATTACHMENT: 20250318 File No. PDA23-005 PSP23-001 EmpireGrovesSP PDEV 07^RESO^RM
ATTACHMENT: 20250318 File No. PDA23-005_PSP23-001_EmpireGrovesSP ^08 PDEV COAs.pdf

22. A CONSOLIDATED PUBLIC HEARING TO CONSIDER ADOPTION OF A RESOLUTION

APPROVING THE DIF NEXUS REPORT UPDATE AND MODIFY DEVELOPMENT IMPACT FEES ATTACHMENT: Development Impact Fee (DIF) Update^01^2024 DIF Update ATTACHMENT: Development Impact Fee DIF Update 02^RESO^RM ATTACHMENT: Development Impact Fee (DIF)^03 General City DIF Breakdown (Effective 07.01.25) 50%.pdf
FILE NO. PSP23-001, A SPECIFIC PLAN (EMPIRE GROVES) TO ESTABLISH THE LAND USE

DISTRICT, DEVELOPMENT STANDARDS, GUIDELINES, AND INFRASTRUCTURE IMPROVEMENTS FOR THE DEVELOPMENT OF UP TO 600,000 SQUARE FEET OF HOSPITALITY AND COMMERCIAL LAND USES ON 10.43-ACRES OF LAND LOCATED ON THE SOUTHEAST CORNER OF GUASTI ROAD AND HOLT BOULEVARD AND MAKING FINDINGS IN SUPPORT THEREOF—APN: 110-322-

33. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, APPROVING FILE NO. PDEV23-039, A DEVELOPMENT PLAN TO CONSTRUCT A 600,000 SQUARE FOOT HOTEL AND COMMERCIAL BUILDING CONSISTING OF 600 ROOMS ON 10.43-ACRES OF LAND

LOCATED ON THE SOUTHEAST CORNER OF GUASTI ROAD AND HOLT BOULEVARD WITHIN THE PROPOSED PA1 (HOSPITALITY MIXED-USE) DISTRICT OF THE EMPIRE GROVES SPECIFIC PLAN, AND MAKING FINDINGS IN SUPPORT THEREOF—APN: 110-322-33.

That the City Council consider and adopt a Resolution to approve the City's Development Impact Fees (DIF) 2024 Nexus Report Update and modify the DIF fees.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, ADOPTING THE

DEVELOPMENT IMPACT FEE CALCULATION AND NEXUS UPDATE REPORT AND ADOPTING AN UPDATED AND MODIFIED DEVELOPMENT IMPACT FEE SCHEDULE.

CITY OF ONTARIO Regular City Council/Housing Authority Meeting CITY HALL 303 EAST B STREET, ONTARIO CA 91764 • www.OntarioCA.gov 12 ATTACHMENT: Development Impact Fee (DIF)^04 General City DIF Breakdown (Effective 07.01.26) 100%.pdf
ATTACHMENT: Development Impact Fee (DIF)^05 Ontario Ranch DIF Breakdown (Effective 07.01.25) 50%.pdf
ATTACHMENT: Development Impact Fee^06 Ontario Ranch DIF Breakdown (Effective

07.01.26) 100%.pdf
ATTACHMENT: Development Impact Fee (DIF)^07 Calculation Nexus Update Report (Adopted 07.15.22).pdf
ATTACHMENT: Development Impact Fee (DIF)^08 Letter of Support ATTACHMENT: Development Impact Fee (DIF) Update^10 PROPOSED CONSOLIDATED DIF SCHEDULE.pdf
ATTACHMENT: Affidavit for Proof of Publication for DIF Update.pdf

STAFF MATTERS
City Manager Ochoa

COUNCIL MATTERS
Mayor Leon
Mayor pro Tem Wapner
Council Member Bowman
Council Member Porada
Council Member Macias

ADJOURNMENT
CITY OF ONTARIO Regular City Council/Housing Authority Meeting CITY HALL 303 EAST B STREET, ONTARIO CA 91764 • www.OntarioCA.gov 13 1 of 1

CITY OF ONTARIO

CLOSED SESSION REPORT
City Council // Housing Authority // Other // (GC 54957.1) March 18, 2025
ROLL CALL: Wapner _, Bowman _, Porada _, Macias _, Mayor / Chairman Leon _.

STAFF: City Manager / Executive Director __, City Attorney __ In attendance: Wapner _, Bowman _, Porada _, Macias _, Mayor / Chairman Leon _.  GC 54956.9 (d)(1), CONFERENCE WITH LEGAL COUNSEL, EXISTING LITIGATION:

City of Ontario, et al. v. Inland Empire Utilities Agency, Orange County Superior Court Case No. 30-2023-01344236-CU-WM-CJC
No Reportable Action Continue Approved
/ / / / / /
Disposition: _________________________________________________________________ In attendance: Wapner _, Bowman _, Porada _, Macias _, Mayor / Chairman Leon _.  GC 54956.9 (d)(1), CONFERENCE WITH LEGAL COUNSEL, EXISTING LITIGATION:

City of Ontario, et al. v. Inland Empire Utilities Agency, Los Angeles Superior Court Case No. 24STCP02321
No Reportable Action Continue Approved
/ / / / / /
Disposition: _________________________________________________________________ Reported by:
___________________________________________
City Attorney / City Manager / Executive Director
14 ONTARIO CITY COUNCIL/

ONTARIO HOUSING AUTHORITY

MINUTES
FEBRUARY 18, 2025
(Not official Until Approved)
(Not Official Until Approved)
(Not

JOINT MEETINGS
The regular meetings of the Ontario City Council and Housing Authority were held on Tuesday, February 18, 2025 at Ontario City Hall, 303 E. B Street Ontario, California.

OPEN MEETING CALLED TO ORDER
Mayor Leon called the joint meetings to order at 6:32 p.m.

ROLL CALL
PRESENT: Mayor/Chairman: Paul S. Leon
Mayor pro Tem/Vice Chair: Alan D. Wapner
Council/Authority Members: Jim W. Bowman, Debra Porada, and Daisy Macias
ABSENT: Council/Authority Members: None

Also present were City Manager / Executive Director Scott Ochoa, City Attorney/Legal Counsel Ruben Duran, and City Clerk / Secretary Sheila Mautz.

INFORMATION RELATIVE TO POSSIBLE CONFLICTS OF INTEREST
There were no conflicts of interest announced.

PLEDGE OF ALLEGIANCE
The Pledge of Allegiance was led by Council Member Macias.

INVOCATION
Invocation was led by Pastor Hernandez with The Church of God Ontario.

PUBLIC COMMENT
Assistant City Clerk Isbell announced that there was one written comment:

Brad Neumann, regarding renaming the City of Ontario.

Mayor Leon called upon the first speaker:

Kristina Cotran, announced upcoming events with Toastmasters.

Brad Neumann, spoke on renaming the City of Ontario.
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Regular Meeting Minutes – February 18, 2025

Page 2 of 7 ends

Stephanie, spoke on the use of electric vehicle chargers.

Tommy Mushegain, spoke on the need of universally accessible playgrounds.

AGENDA REVIEW/ANNOUNCEMENTS
City Manager Ochoa announced the need to move public hearing Item No. 13 to the regular meeting of March 4, 2025.

CONSENT CALENDAR
MOTION: Moved by Council Member Porada, seconded by Council Member Macias and carried by a unanimous vote 5-0, to approve the Consent Calendar as presented.

1. APPROVAL OF MINUTES
Minutes for the regular meetings of the City Council and Housing Authority of January 21, 2025, and approving same as on file in the Records Management Department.

2. BILLS & PAYROLL
Approved bills January 17, 2025 through January 30, 2025, in the amount of $40,964,945.93, and Payroll December 29, 2024 through January 11, 2025 in the amount of $5,722,436.49.

3. AN AMENDMENT TO THE MAINTENANCE SERVICES AGREEMENT WITH BRIGHTVIEW LANDSCAPE SERVICES, INC. FOR WEED ABATEMENT
The City Council authorized the City Manager, or his designee, to execute Amendment No. 2 to the Maintenance Services Agreement No. PM 2122-1 with BrightView Landscape Services, Inc., of Upland, California, for Weed Abatement in the amount of $20,496 for a total not-to-exceed contract amount of $321,764.

4. ACCEPT WRITTEN PETITIONS TO CREATE A COMMUNITY FACILITIES DISTRICT; ADOPT A RESOLUTION OF INTENTION TO ESTABLISH CITY OF ONTARIO COMMUNITY FACILITIES DISTRICT NO. 73 (WILDFLOWER ACRES) AND TO AUTHORIZE THE LEVY OF SPECIAL TAXES; AND ADOPT A

RESOLUTION DECLARING IT NECESSARY TO INCUR BONDED

INDEBTEDNESS
The City Council considered and:

A. Accepted written petitions from Pulte Home Company, LLC and AG EHC II (PHM) CA 2, L.P. ("Landowners"), to create a Community Facilities District ("CFD") and to waive certain procedural matters, under the Mello-Roos Community Facilities Act of 1982;
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B. Adopted a Resolution of Intention to establish City of Ontario Community Facilities District No. 73 (Wildflower Acres), authorize the associated levy of special taxes therein; and set a public hearing for the formation of the CFD as part of the regularly scheduled City Council meeting on Tuesday, April 1, 2025; and
C. Adopted a Resolution Declaring it Necessary for the City of Ontario Facilities District No. 73 (Wildflower Acres) to Incur Bonded Indebtedness.

RESOLUTION NO. 2025-002 A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF ONTARIO, CALIFORNIA, OF INTENTION TO ESTABLISH A

COMMUNITY FACILITIES DISTRICT PROPOSED TO BE NAMED CITY OF ONTARIO COMMUNITY FACILITIES DISTRICT NO. 73 (WILDFLOWER ACRES) AND TO AUTHORIZE THE LEVY OF A SPECIAL TAX THEREIN.

RESOLUTION NO. 2025-003 A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF ONTARIO, CALIFORNIA, DECLARING IT NECESSARY FOR CITY OF ONTARIO COMMUNITY FACILITIES DISTRICT NO. 73 (WILDFLOWER ACRES) TO INCUR BONDED INDEBTEDNESS.

5. A CHANGE ORDER TO THE CONSTRUCTION CONTRACT WITH GRBCON, INC. FOR EASEMENT AND STORM DRAIN PIPE REPLACEMENT PROJECT The City Council authorized the City Manager, or his designee, to approve Change Order No. 3 to the Construction Contract with GRBCON, Inc., of Baldwin Park, California, for the Easement and Storm Drain Pipe Replacement Project in the amount of $163,576 for a total not-to-exceed contract amount of $1,408,677.

6. INCREASE NOT-TO-EXCEED AMOUNT OF CO-OPERATIVE PURCHASES &

PRE-AUTHORIZED VENDORS FOR FLEET EQUIPMENT SERVICES AND PARTS
The City Council took the following actions:

A. Authorized the purchasing threshold increase for the co-operative purchase and delivery of fleet parts in the amount of $350,000 for a not-to-exceed amount of $475,000 from Factory Motor Parts, of Pomona, California, consistent with the terms and conditions of the CA-State Contract DGS-7-21- 99-41-01, and
B. Authorized the purchasing threshold increase for the co-operative purchase and delivery of fleet parts in the amount of $300,000 for a not-to-exceed amount of $455,000 from Parts Authority, of Rancho Cucamonga, California, consistent with the terms and conditions of the CA-State Contract DGS-7-21- 99-41-03; and
C. Authorized the purchasing threshold increase for the pre-authorized purchase and delivery of fleet parts and services in the amount of $450,000 for a notto-exceed amount of $799,000 from Rush Truck Center, of Fontana, California.
17 Ontario City Council/Ontario Housing Authority
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7. ACCEPTANCE OF BROADBAND PROGRAM BENEFICIARIES FROM

SOUTHERN CALIFORNIA ASSOCIATION OF GOVERNMENTS (SCAG)
The City Council approved a Memorandum of Understanding with Southern California Association of Governments (SCAG) of Los Angeles, California, for broadband program beneficiaries relating to the Local Agency Technical Assistance Program.

8. PURCHASE ADDITIONAL MICROSOFT 365 SUBSCRIPTIONS WITH SOFTWAREONE INC.

The City Council authorized the City Manager, or his designee, to execute the purchase of additional Microsoft 365 subscriptions with SoftwareONE Inc., of Milwaukee, Wisconsin, for $65,805 plus $100,000 in contingency, revising not-toexceed amount on the agreement to $1,774,456.

9. AN AMENDMENT TO THE PROFESSIONAL SERVICES AGREEMENT WITH CALTEK TECHNOLOGIES, INC., FOR LOW-VOLTAGE CABLING AND

EQUIPMENT INSTALLATION
The City Council took the following actions:

A. Authorized the City Manager, or designee, to execute Amendment No. 7 to the Professional Services with Caltek Technologies, Inc., of Ontario, CA, for low-voltage cabling, extending the terms for three years and increase the authorized amount by $300,000 for a total contract not-to-exceed amount of $475,957.

B. Authorized the City Manager, or designee, to execute Amendment No. 7 to the Professional Services with Caltek Technologies, Inc., of Ontario, CA, for low-voltage cabling for the Animal Resource Center of the Inland Empire’s (ARC) temporary animal shelter, increasing the authorized amount by $71,276 for a total contract not-to-exceed amount of $547,233.

10. AN AMENDMENT TO THE PROFESSIONAL SERVICES AGREEMENT WITH AXON ENTERPRISE, INC. FOR THE ACQUISITION OF POLICE DEPARTMENT

FRONTLINE EQUIPMENT
The City Council authorized the City Manager, or his designee, to execute Amendment No. 6 to the Professional Services Agreement with Axon Enterprise, Inc. of Scottsdale, Arizona, for the purchase of twelve (12) Axon Skydio police unmanned aircraft systems (drones) in the amount of $1,812,703 and Axon Standards, an Early Intervention System (EIS), in the amount of $65,000 for a new total not-to-exceed contract amount of $11,658,373.
18 Ontario City Council/Ontario Housing Authority
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PUBLIC HEARING

11. A PUBLIC HEARING TO CONSIDER AN URGENCY ORDINANCE APPROVING A DEVELOPMENT CODE AMENDMENT, FILE NO. PDCA24-004, REGARDING

ACCESSORY DWELLING UNITS AND JUNIOR ACCESSORY DWELLING UNITS The City Council considered and waived further reading, and adopted an Urgency Ordinance approving File No. PDCA24-004, to amend Division 5.03 - Supplemental Land Use Regulations, Section 5.03.010 (Accessory Dwelling Units) of the City's Development Code to comply with recent changes to state law that impose new limits on local authority to regulate Accessory Dwelling Units (“ADUs”) and Junior Accessory Dwelling Units (“JADUs”), which took eect on January 1, 2025.

URGENCY ORDINANCE NO. 3296 AN URGENCY ORDINANCE OF THE CITY

COUNCIL OF THE CITY OF ONTARIO, CALIFORNIA, APPROVING A DEVELOPMENT CODE AMENDMENT, FILE NO. PDCA24-004, AMENDING DIVISION 5.03 & SUPPLEMENTAL LAND USE REGULATIONS, SECTION

5.03.010 OF THE CITY'S DEVELOPMENT CODE RELATING TO ACCESSORY

DWELLING UNITS AND JUNIOR ACCESSORY DWELLING UNITS AND FINDING

THE ACTION TO BE STATUTORILY EXEMPT FROM CEQA UNDER PUBLIC RESOURCES CODE SECTION 21080.17.

Notice of public hearing was duly given. Affidavits of compliance are on file. There were no written communications.

Mayor Leon opened the public hearing and inquired if anyone was interested in speaking to the item. Hearing no one, Mayor Leon closed the public hearing and opened the item for Council discussion.

MOTION: Moved by Council Member Porada, seconded by Council Member Bowman and carried by a unanimous vote 5-0, to adopt Urgency Ordinance No. 3296.

12. A PUBLIC HEARING TO CONSIDER APPROVAL OF A DISPOSITION AND

DEVELOPMENT AGREEMENT BETWEEN THE CITY OF ONTARIO AND
ONTARIO RANCH HOTELS, LLC. FOR THE DEVELOPMENT OF A HOTEL FEATURING 227-GUEST ROOMS AT THE SOUTHEAST CORNER OF EAST RIVERSIDE DRIVE AND ONTARIO AVENUE; MAKING CERTAIN CEQA

FINDINGS IN CONNECTION THEREWITH
The City Council (“City”) considered and:

A. Adopted a Resolution approving pursuant to the Certified Final Environmental Impact Report for the Ontario Regional Sports Complex (SCH No. 2023110328) the Disposition and Development Agreement ("Agreement") between the City of Ontario and Ontario Ranch Hotels, LLC. ("Developer") (on file with the Records Management Department) and approving the acquisition of real property for road improvements needed at the corner of East Riverside Drive and Vineyard Avenue.
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B. Authorized the City Manager, or his designee, to sign all documents necessary to implement the Agreement.

RESOLUTION NO. 2025-004 A RESOLUTION OF THE CITY COUNCIL OF THE

CITY OF ONTARIO, CALIFORNIA, APPROVING, PURSUANT TO THE

CERTIFIED FINAL ENVIRONMENTAL IMPACT REPORT FOR THE ONTARIO REGIONAL SPORTS COMPLEX (SCH NO. 2023110328), A DISPOSITION AND

DEVELOPMENT AGREEMENT BETWEEN THE CITY AND ONTARIO RANCH

HOTELS, LLC FOR THE DEVELOPMENT OF CERTAIN REAL PROPERTY

LOCATED ON THE SOUTHEAST CORNER OF EAST RIVERSIDE DRIVE AND ONTARIO AVENUE, ONTARIO, CALIFORNIA (PORTION OF APN 0218-111-12- 0000); MAKING CERTAIN CEQA FINDINGS IN CONNECTION THEREWITH.

Notice of public hearing was duly given. Affidavits of compliance are on file. There was one written communication from the Law Office of Jordan R. Sisson in opposition.

Mayor Leon opened the public hearing and called upon the Executive Director of Economic Development to provide background information regarding the item.

Tina Silva, spoke in opposition.

Jorge Zavala, spoke in opposition.

Jordan Sissan, spoke in opposition.

Chris Robles, spoke in opposition.

Karen May, spoke in opposition.

Tommy Mushegain, spoke in opposition.

Robert Ramos, spoke in opposition.

Mayor Leon closed the public hearing and City Council discussed the item before coming to a consensus.

MOTION: Moved by Mayor pro Tem Wapner, seconded by Council Member Porada and carried by a unanimous vote 5-0, to adopt Resolution No. 2025-004.

13. A PUBLIC HEARING TO CONSIDER ADOPTING A RESOLUTION OF

NECESSITY FOR THE ACQUISITION BY EMINENT DOMAIN OF A FEE SIMPLE INTEREST IN CERTAIN REAL PROPERTY LOCATED AT 434 NORTH EUCLID AVENUE
The City Council continued this Item to the March 4th meeting.

MOTION: Moved by Mayor Leon, seconded by Council Member Macias and carried by a unanimous vote 5-0, to continue the item to regular meeting on March 4, 2025.

STAFF MATTERS
City Manager Ochoa made no announcements.
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COUNCIL MATTERS
Council Member Macias made no comments.

Council Member Bowman welcomed his son back to Ontario.

Mayor pro Tem Wapner made no comments.

Council Member Porada announced the Ontario Heritage Golf Tournament Fundraiser.

Mayor Leon made no comments.

ADJOURNMENT
Mayor Leon adjourned the meetings of the Joint Agencies at 7:31 p.m., in memory of Planning Commissioner Randy Del Turco and announced the next regular meeting was scheduled for March 4, 2025.

Respectfully submitted,
____________________________________

SHEILA MAUTZ, CITY CLERK/SECRETARY
APPROVED:
_____________________________________
PAUL S. LEON, MAYOR/CHAIRMAN
21 ONTARIO CITY COUNCIL/

ONTARIO HOUSING AUTHORITY

MINUTES
FEBRUARY 20, 2025
(Not Official Until Approved)
(not official until approved)

JOINT MEETINGS
The Special Meeting / Study Session of the Ontario City Council and the Ontario Housing Authority scheduled for February 20, 2025, were cancelled due to lack of quorum.

Respectfully submitted,
___________________________________________________

SHEILA MAUTZ, CITY CLERK/SECRETARY
APPROVED:
___________________________________________________
PAUL S. LEON, MAYOR/CHAIRMAN
22 Department: Financial Services
Prepared By: Jessica Ban
Staff Member Presenting: Armen Harkalyan,
Executive Director of Finance
Approved By:

Submitted To: Council/OHA
Approved: _______________________________
Continued To: ___________________________
Denied: __________________________________
Item No: 3
SUBJECT: A DEVELOPMENT IMPACT FEE CREDIT AGREEMENT (FILE NO. PDIF24-001) BETWEEN THE CITY OF ONTARIO AND AG EHC II (LEN) CA 3, L.P. FOR FACILITY CONSTRUCTION ASSOCIATED WITH TRACT MAP 20536 (FILE NO. PMTT22-021), LOCATED 875 FEET SOUTH OF THE INTERSECTION OF RIVERSIDE DRIVE AND

ARCHIBALD AVENUE, WITHIN THE COUNTRYSIDE SPECIFIC PLAN

CITY OF ONTARIO
Agenda Report
March 18, 2025
SECTION:

CONSENT CALENDAR
RECOMMENDATION: That the City Council authorize the City Manager to execute the Development Impact Fee Credit Agreement (File No. PDIF24-001) between the City of Ontario and AG EHC II (LEN) CA 3, L.P., for facility construction associated with Tract Map 20536 (File No. PMTT22-021), located 875 feet south of the intersection of Riverside Drive and Archibald Avenue, within the Countryside Specific Plan, and authorize the City Manager to execute the Agreement.

THE FOLLOWING COUNCIL GOALS ARE BEING ACHIEVED:

Invest in the Growth and Evolution of the City's Economy Operate in a Businesslike Manner
Invest in the City's Infrastructure (Water, Streets, Sewers, Parks, Storm Drains and Public Facilities)
Ensure the Development of a Well Planned, Balanced, and Self-Sustaining Community in Ontario Ranch
FISCAL IMPACT: Approval of the proposed Development Impact Fee (DIF) Credit Agreement (File No. PDIF24-001) will not result in any fiscal impact to the City’s General Fund. The project’s Development Agreement (File No. PDA22-005) and related conditions require AG EHC II (LEN) CA 3, L.P. (hereinafter referred to as “Developer”) to construct DIF program infrastructure with estimated costs of $396,828. The proposed DIF Credit Agreement defines the amount of DIF credit that the Developer may be eligible to receive for construction of the improvements. The DIF credit that the Developer will receive upon completion of the improvements may be exchanged for a refund of the DIF fees paid by the Developer (up to the Developer’s maximum DIF obligation) in the respective DIF category.

BACKGROUND & ANALYSIS: On March 7, 2024, the City Council approved the Development Agreement (File No. PDA22-005) between the City of Ontario and AG EHC II (LEN) CA 3, L.P., for Tract Map 20536.
23 In accordance with the Development Agreement and related conditions, the Developer is required to construct DIF Program infrastructure to serve TM 20536. Improvements include the installation of streets and fiber optics facilities on Archibald Avenue and a quarter-mile signal at Archibald Avenue and Maplewood Privado.

Pursuant to the City's adopted DIF Credit and/or Reimbursement policies, construction of DIF Program facilities requires the Developer and the City to enter into a DIF Credit and/or Reimbursement Agreement, which specifies the infrastructure to be constructed by the Developer and includes an estimate of the maximum DIF credit that may be applied in the applicable Regional/Local DIF categories. These infrastructure improvements are within the Ontario Ranch streets and fiber optics system categories. Since the maximum eligible costs in the Agreement for the required infrastructure exceeds the Developer’s DIF obligation, the Developer is eligible to receive DIF Credit under the proposed Agreement.

The proposed Agreement complies with the City's DIF policies and conforms with the approved Development Plan and associated COA. Under the provisions of the City's DIF Program, the City Manager is authorized to execute this Agreement upon approval by the City Council. 24 25
26 27
28 29
30 31
32 33
34 35
36 37
38 39
40 41
42 43
44 45
46 47
48 49
50 51
52 53
54 55
56 Department: Budget
Prepared By: Evan Erickson
Staff Member Presenting: Armen Harkalyan,
Executive Director of Finance
Approved By:

CITY OF ONTARIO
Agenda Report
March 18, 2025
SECTION:

CONSENT CALENDAR
RECOMMENDATION: That the City Council take the following actions:

A. Approve the budget adjustments and recommendations as presented in the Fiscal Year 2024- 25 Mid-Year Budget Update Report (Exhibit A);
B. Consider and adopt a Resolution making a declaration of intent to issue tax-exempt obligations; and
C. Approve the updated Purchasing Policies and Procedures Manual THE FOLLOWING COUNCIL GOALS ARE BEING ACHIEVED:

Operate in a Businesslike Manner
FISCAL IMPACT: The recommended actions will affect several fund budgets as outlined in the Fiscal Year 2024-25 Mid-Year Budget Update Report.

BACKGROUND & ANALYSIS: The Mid-Year Budget Update Report for Fiscal Year 2024-25 reflects the Financial Services Agency's continued efforts to provide timely, accurate, and understandable financial information to assist the City Council with decision making and achievement of core goals.

All Funds have been reviewed in preparing this report. The emphasis of this report is on the General Fund, which funds the majority of government services including public safety, recreation, library, museum, parks, building and planning.

The primary purposes of this report are to:

Revise the City's budget to reflect the City Council's actions taken since the beginning of the current fiscal year;
Recommend personnel changes to enhance program operations and efficiencies; Recommend budget adjustments that are consistent with City Council goals and objectives; and Comment on significant budget and economic trends which may impact fiscal year's budget development.
57 Fiscal Year 2024-25 Mid-Year Budget Update Recommendations Fiscal Year 2024-25 Mid-Year Budget Update are routine in nature and comprised predominately by City Council actions taken since the First Quarter Budget Update. Mid-Year Budget Update includes proposed new expenditure budget requests, as well as revised revenue estimates for FY 2024-25.

For the General Fund, the net result of these actions will bring the General Fund estimated available and unencumbered ending fund balance to $81.8 million or 21.2% of total appropriations. This amount achieves the goal set by City Council as a reserve for specific and defined emergency events (such as an earthquake or pandemic) and to address immediate needs in resources without impacting City services. This goal was temporarily decreased to 15% during the COVID pandemic but has since been brought back up to the previous set goal of 20%, effective July 1, 2023, with the goal of increasing the reserves up to 25% in future fiscal years.

General Fund Highlights
$2.8 million increase in Sales Tax revenue
$450 thousand increase in Parking Tax revenue
$2.0 million appropriations for the City Share of the Animal Resource Center (ARC) of the Inland Empire Agreement
$1.6 million appropriations for the roof repair and suite remodel of the Toyota Arena (offset by increase in the City's share of revenues from the arena) Other Funds (non-General Fund) Highlights
$9.3 million appropriations for previously approved vehicle purchases both received and anticipated to be received by the end of the fiscal year $5.9 million appropriations for the Ontario Sports Empire: debt service related to the property acquisition for Ontario WF Farms (10 acres) and Dairy River (15 acres) $5.0 million appropriations for Grove & Holt Intersection widening project $3.6 million appropriations and revenues for the United States Environmental Protection Agency (EPA) Solid Waste Infrastructure for Recycling (SWIFR) Grant $2.3 million appropriations for additional funding for the Grove and I-10 Interchange Corridor project
Interim budget updates also present recommendations for personnel and organizational changes necessary to enhance program operations and efficiencies. Current recommendations for this MidYear report include reclassification changes, adds/deletes, and other modifications to the authorized full-time positions resulting in a zero net increase citywide. More detail is presented in the attached Exhibit A under Recommended Personnel Changes section, pages 10 through 13, of the Fiscal Year 2024-25 Mid-Year Budget Update Report.
58 Reimbursement Resolution Declaring Intent to Issue Bonds The City intends to finance the acquisition, construction, and installation of certain public capital improvements with the proceeds of the sale of tax-exempt obligations. Staff recommends approval of a Reimbursement Resolution, which permits the City to reimburse itself for certain costs incurred prior to the issuance of bonds, as allowed under the Internal Revenue Code.

Purchasing Policy Update
As required by Public Contract Code, the City has added additional supplier preferences in our Purchasing Policies and Procedures to allow for fair access to the procurement process and opportunities within the City to include veteran, minority, and women-owned suppliers.

Economic Outlook
The following economic indicators are the most recent measures of economic activity.

Gross Domestic Product (GDP): The broadest measure of economic output, increased at an annual rate of 2.3% in the fourth quarter of 2024, according to the most recent released as a result of increased consumer spending and increased government spending. This was a minor decrease compared to the third quarter of 2024, in which the real GDP increased by 3.1%. The increase in the fourth quarter primarily reflected increases in consumer spending and government spending, with decreases in imports. (Source: Bureau of Economic Analysis) Unemployment Rate: The national unemployment rate slightly declined to 4.1% in December 2024 compared to the 4.2% reported for November 2024. Comparing the current national rate to the previous year rate of 3.8%, it is an increase of 0.3%. California's unemployment rate remains unchanged in December 2024 with a slight increase compared to the prior year's rate of 5.1%.

Locally, the Inland Empire's unemployment rate decreased to 4.9% compared to 5.3% in November 2024. The Inland Empire's labor market has recovered from the COVID-19 pandemic and is still strong. Since April 2020, the region has added over 356,000 jobs, which is more than the 228,700 jobs lost during the national lockdown. (Source: US Bureau of Labor Statistics) Consumer Price Index (CPI): This rate is utilized to track changes in the prices of goods and services and is a useful tool for tracking inflation or the cost of living. For January 2025, the Riverside-San Bernardino-Ontario metropolitan area's CPI rate increased by 2.9% over the last 12- month period. This small increase in CPI indicates a cooling of the economy due to the various tools the federal government has implemented to hamper the exponential economic growth occurring as a result of the COVID-19 pandemic. (Source: US Bureau of Labor Statistics) Housing Market: A continued shortage of homes for sale and high costs of borrowing continues to have a negative impact on the housing inventory and demand. With the recent declining of mortgage rates and the expectation that the rates will continue to decrease in 2025, it is anticipated that home sales will bounce back as buyers and sellers return to a more favorable housing market.

Statewide sales for existing single-family homes in December 2024 were 19.8% higher than they were for the same time period in the previous year. Overall, home sales in the Inland Empire for 59 December 2024 increased 10.1% compared to the previous month, and a 7.3% increase compared to the same time period in the previous year. (Source: HdL Coren and Cone) Conclusion
As the City recovers from the last four years of economic disruption from the COVID pandemic, other challenges still exist with the continued war in Ukraine; rising consumer good prices; continued high interest rates even with recent rate cuts by the Federal Reserve; the possibility of a recession due to accelerated inflation levels not seen since the early 1980's; the unknown fiscal impacts from proposed tariffs by the new federal administration; and the ongoing conflict in the middle east. Even with the anticipated additional resources, the City will need to continue to practice fiscal discipline and establish proactive measures to safely navigate the current and upcoming fiscal challenges, as well as deliver an unparalleled level of service and commitment to our community.

The Adopted Operating Budget for Fiscal Year 2024-25, as modified through this Mid-Year Budget Update, reflects the City Council's continued commitment to support high quality public safety and municipal services, provides for the maintenance and expansion needs of the City's infrastructure and facilities, profiles an aggressive economic development strategy, and assures the investment and reinvestment of City resources into the community - all in the name of affording Ontario residents and businesses an exceptional quality of life. With the City Council's leadership and their prudent fiscal policies, the City's long-term financial health will further solidify its standing as the economic leader in the Inland Empire, and a formidable player in California and the nation. 60 RESOLUTION NO. _______

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ONTARIO,

CALIFORNIA, REGARDING ITS INTENTION TO ISSUE TAX-EXEMPT OBLIGATIONS.

WHEREAS, the City Council of the City of Ontario (the “Issuer”) desires to finance the costs of constructing or acquiring certain public facilities and improvements, as provided in Exhibit A attached hereto and incorporated herein (the “Project”); WHEREAS, the Issuer intends to finance the acquisition of the Project or portions of the Project with the proceeds of the sale of obligations the interest upon which is excluded from gross income for federal income tax purposes (the “Obligations”); and WHEREAS, prior to the issuance of the Obligations the Issuer desires to incur certain expenditures with respect to the Project from available monies of the Issuer which expenditures are desired to be reimbursed by the Issuer from a portion of the proceeds of the sale of the Obligations;

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ONTARIO DOES HEREBY RESOLVE, ORDER AND DETERMINE AS FOLLOWS:

SECTION 1. The Issuer hereby states its intention and reasonably expects to reimburse Project costs incurred prior to the issuance of the Obligations with proceeds of the Obligations. Exhibit A describes either the general character, type, purpose, and function of the Project, or the fund or account from which Project costs are to be paid and the general functional purpose of the fund or account.

SECTION 2. The reasonably expected maximum principal amount of the Obligations is $290,000,000 to be issued in one or more series.

SECTION 3. This resolution is being adopted not later than 60 days after the date (the “Expenditures Date or Dates”) that the Issuer will expend monies for the portion of the Project costs to be reimbursed from proceeds of the Obligations.

SECTION 4. Except as described below, the expected date of issue of the Obligations will be within eighteen months of the later of the Expenditure Date or Dates and the date the Project is placed in service; provided, the reimbursement may not be made more than three years after the original expenditure is paid. For Obligations subject to the small issuer exception of Section 148(f)(4)(D) of the Internal Revenue Code, the “eighteen-month limit” of the previous sentence is changed to “three years” and the limitation of the previous sentence beginning with “; provided, . . . .” is not applicable.

SECTION 5. Proceeds of the Obligations to be used to reimburse for Project costs are not expected to be used, within one year of reimbursement, directly or indirectly to pay debt service with respect to any obligation (other than to pay current debt service 61 coming due within the next succeeding one year period on any tax-exempt obligation of the Issuer (other than the Obligations)) or to be held as a reasonably required reserve or replacement fund with respect to an obligation of the Issuer or any entity related in any manner to the Issuer, or to reimburse any expenditure that was originally paid with the proceeds of any obligation, or to replace funds that are or will be used in such manner.

SECTION 6. This resolution is consistent with the budgetary and financial circumstances of the Issuer, as of the date hereof. No monies from sources other than the Obligation issue are, or are reasonably expected to be reserved, allocated on a long-term basis, or otherwise set aside by the Issuer (or any related party) pursuant to their budget or financial policies with respect to the Project costs. To the best of our knowledge, this City Council is not aware of the previous adoption of official intents by the Issuer that have been made as a matter of course for the purpose of reimbursing expenditures and for which tax-exempt obligations have not been issued.

SECTION 7. The limitations described in Section 3 and Section 4 do not apply to (a) costs of issuance of the Obligations, (b) an amount not in excess of the lesser of $100,000 or five percent (5%) of the proceeds of the Obligations, or (c) any preliminary expenditures, such as architectural, engineering, surveying, soil testing, and similar costs other than land acquisition, site preparation, and similar costs incident to commencement of construction, not in excess of twenty percent (20%) of the aggregate issue price of the Obligations that finances the Project for which the preliminary expenditures were incurred.

SECTION 8. This resolution is adopted as official action of the Issuer in order to comply with Treasury Regulation § 1.150-2 and any other regulations of the Internal Revenue Service relating to the qualification for reimbursement of Issuer expenditures incurred prior to the date of issue of the Obligations, is part of the Issuer’s official proceedings, and will be available for inspection by the general public at the main administrative office of the Issuer.

SECTION 9. All the recitals in this Resolution are true and correct and this City Council so finds, determines and represents.

The City Clerk of the City of Ontario shall certify as to the adoption of this Resolution.

PASSED, APPROVED, AND ADOPTED this 18th day of March, 2025. _____________________________________
PAUL S. LEON, MAYOR
62 ATTEST:
____________________________________

SHEILA MAUTZ, CITY CLERK
APPROVED AS TO FORM:
____________________________________

BEST BEST & KRIEGER LLP

CITY ATTORNEY
63 STATE OF CALIFORNIA )

COUNTY OF SAN BERNARDINO )

CITY OF ONTARIO )
I, SHEILA MAUTZ, City Clerk of the City of Ontario, DO HEREBY CERTIFY that foregoing Resolution No. 2025- was duly passed and adopted by the City Council of the City of Ontario at their regular meeting held March 18, 2025 by the following roll call vote, to wit:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:
____________________________________

SHEILA MAUTZ, CITY CLERK
(SEAL)
The foregoing is the original of Resolution No. 2025- duly passed and adopted by the Ontario City Council at their regular meeting held March 18, 2025. _____________________________________

SHEILA MAUTZ, CITY CLERK
(SEAL)
64 EXHIBIT A

DESCRIPTION OF PROJECT
Projects as part of the Capital Improvement Project (CIP) budget of the City of Ontario for Fiscal Year 2024-2025 through Fiscal Year 2028-2029, including, but not limited to civic center infrastructure, sports complex, street repairs, animal services, theatre, parking, storm drains, park and recreation, museum, roofing, entertainment and downtown revitalization, sidewalks, bollards, information networks, street lights, golf courses, trails, library, lighting, police, public safety, and community center, among other public infrastructure.
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PURPOSE
The primary goals and objectives of this Purchasing Policies and Procedures Manual (“Manual”) are:
a. To facilitate best-value purchasing transactions.
b. To help employees of the City of Ontario (“City”) facilitate the timely procurement of goods and services (“Purchasing System”) needed to meet the City's operational needs while adhering to the regulations set forth in the City’s Municipal Code (Volume 1, Title 2, Chapter 6), Generally Accepted Accounting Practices (“GAAP”), and all applicable Federal and State of California regulations and requirements. c. To complement and reinforce fiscal control measures. d. To communicate Citywide and promote a common understanding of the City's procurement policies and established business practices; e. To define procurement roles and responsibilities of the Purchasing Division and staff, and serve as a tool for employee training and development.

The policy statements contained in this Manual represent the foundation upon which the City operates in its Purchasing System. This Manual will be revised and supplemented, as required, to meet City requirements.

SUBJECT

PURCHASING POLICIES

AND PROCEDURES MANUAL
Number: FSA-002
Effective Date: March 18, 2025
Revision Date: March 18, 2025
Policy Owner(s): Financial Services
Agency
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SCOPE
The Purchasing Division, part of the Financial Services Department, is focused on strengthening the economic well-being and quality of life of the City’s community through oversight of the timely procurement of City services and infrastructure. It defines success as providing superior service to all City Departments and thereby to the community, and it strives to maintain:
a. A strong commitment and genuine desire to provide supportive customer service in the spirit of teamwork, to take the extra step to be helpful, and to obtain the best quality of life for our community as the highest priority. b. An attitude that fosters cooperation, creativity, and innovation in problem-solving while aiming to make the most economically prudent use of the City's limited resources.
c. The highest level of integrity and ethical standards while discharging its duties in accordance with the City's policies and procedures, and all applicable laws and regulations.
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DEFINITIONS
a. Annual Purchase Order: A purchasing method used to purchase designated goods and/or services on a repetitive basis for the City’s Agencies or Departments. Annual Purchase Orders shall be issued to a specific supplier on a per fiscal year basis and shall close at the end of the fiscal year.
b. Best Value: A value determined by evaluation of objective criteria that may include, but not be limited to price, features, functions life-cycle costs, technical experience, and past performance. A best value determination may involve the lowest cost proposal meeting the interests of the City and the needs of the project, or a tradeoff between price and other specified factors.
c. City: Refers to any entity affiliated with the City, including the Ontario Housing Authority (to the extent such entity adopts a resolution subjecting itself to the Uniform Public Construction Cost Accounting Act, and these purchasing policies and procedures). d. Cooperative Purchasing: A competitive procurement method whereby the procurement requirements of two or more governmental entities are combined to obtain the benefits of volume pricing, reduction in administrative costs, or both. e. Emergency: A sudden unexpected occurrence that poses a clear and imminent danger requiring immediate action to prevent or mitigate the loss or impairment of life, health property, or essential public services.
f. Formal Bid: A bid (subject to Section 2-6.07 of the Municipal Code) advertised in a local newspaper; submitted in a sealed envelope and in conformance with a prescribed format; and publicly opened at a specified place, date, and time. g. Goods: Supplies, materials, equipment, and other commodities (other than services and real property) included in California Commercial Code Section 2105. h. Non-competitive: A non-competitive procurement whereby an acceptable justification exists to support goods, services, or public works related purchases provided by a particular supplier without a competitive process. i. Prevailing Wage: California Labor Code Sections 1720 et seq. and 1770 et seq., as well as California Code of Regulations Title 8, Section 16000, et seq. (“Prevailing Wage Laws) require the payment of prevailing wage rates and the performance of other requirements on certain “public works” and “maintenance” projects. If the work is 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, the City must make suppliers aware of these requirements and suppliers must fully comply with such Prevailing Wage Laws. For more information and threshold levels, visit the Department of Industrial Relations website at dir.ca.gov. 68 CITY OF ONTARIO

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j. Procurement: The purchasing, leasing, or otherwise acquiring of any goods, services, or public project construction (including all of the functions that pertain to the acquisition). k. Professional Services: Advisory, consulting, architectural, engineering, computer, legal, financial, telecommunications, financial, surveying or any service which involves the exercise of professional discretion or independent judgment (based on an advanced or specialized knowledge, expertise, or training gained by formal studies or experience). l. Purchase Order: The written document provided to the supplier formalizing the terms and conditions associated with the ordering of the goods, services, or public project required by the City. It is the payment document and also serves as a low value threshold contractual document.
m. Purchasing Officer: The position defined by the City’s organizational structure that is responsible for overseeing the Purchasing Division. The person occupying such a position may delegate to such other person or entity as he/she deems advisable such duties and responsibilities as have been provided. In the absence of the Purchasing Officer, or designee, the Assistant Finance Director or the Executive Director of Financial Services has the authority to sign purchase orders.
n. Requisition: A written request submitted to the Purchasing Division by a City Agency or Department to initiate the procurement process for specified goods, services, or a public project.
o. Responsive Bid: A bid which meets all of the specifications set forth in the request for bid proposal.
p. Responsible Bidder: A bidder who has demonstrated the attribute of trustworthiness as well as quality, fitness, capacity, and experience to satisfactorily perform the public works contract.
q. Services: The furnishing of labor, time, or effort by a contractor or supplier (which may involve to a lesser degree the delivery or supply of products). The term does not include services rendered by City officers and employees, nor private firms offering professional services.
r. Sole Source: A non-competitive procurement whereby an acceptable justification exists to support goods, services, or public works related purchases provided by a single source supplier. A sole source is, by definition, only available from one source. s. Standardized suppliers: A non-competitive procurement whereby pre-authorized suppliers, approved by City Council, are selected for procuring products or services determined to be in the City’s best interest to buy directly from specified suppliers. t. Virgin Materials: Items that in their raw or unprocessed form tend to use more energy during processing phase. Therefore, recycled materials are preferred. 69 CITY OF ONTARIO

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POLICY

1.0 PROCUREMENT OVERVIEW

1.1 Policy Statement
a. The City’s goal for every purchasing transaction is to obtain the best value possible. Best value is determined by evaluating many factors (such as price, delivery capabilities, quality, past performance, training, financial stability, service capabilities, ease of ordering, payment terms, functions, features, life-cycle costs, etc.) and selecting a supplier that offers the best combination of those factors.

1.2 Policy Amplification
a. The Financial Services Department of the Financial Services Agency supports sustaining and promoting a procurement environment to best support the operational needs of the City’s Agencies and Departments. These purchasing policies and procedures are meant to foster an environment that puts its City’s Agencies and/or Departments in the best possible position to procure the products and services needed in a timely and cost-effective manner to effectively operate (while also making sure appropriate procurement processes are followed).
b. It is the responsibility of all employees involved in the procurement process to exercise due diligence in an effort to mitigate any avoidable risks, obtain maximum value for each dollar expended, and protect the City's rights in carrying out procurement transactions and in administering contracts.

2.0 PROCUREMENT CODE OF ETHICS

2.1 Policy Statement
a. The City desires to maintain a reputation that embodies the very highest standards of ethical conduct, and advocate a code of conduct that prohibits breach of public trust by any attempt to realize personal gain by a public employee through conduct inconsistent with the proper discharge of the employee's duties. b. Employees are expected to demonstrate loyalty to the City by diligently following lawful instructions, using reasonable care, and using only the authority granted. City employees shall know and obey the letter and spirit of laws governing the purchasing function, and remain alert to the legal ramifications of purchasing decisions. c. It is the responsibility of all City employees to endeavor to maintain the good name of the City, to develop and maintain good relations between the City and its suppliers, and to keep in mind that personal contacts form much of the basis for public opinion. 70 CITY OF ONTARIO

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City employees must place the interests of the City first in all transactions (and expose questionable practices wherever discovered).

2.2 Supplier Relations
a. Negotiations with suppliers should be based on sound business judgment. The City expects its employees to be fair and neither perform nor accept favors. It is prohibited for City employees to accept personal advantages. Entertainment, gifts, free services, discounts on personal purchases (whether for the City employee or anyone else in his/her family or household) is forbidden. Favors must be declined and gifts must be returned pleasantly, diplomatically, and firmly. Relations with suppliers should be friendly, objective, and strictly for business.

2.3 Conflicts of Interest
a. The City expects its employees will not permit any conflict of interest between their personal affairs and City business. One may not have a financial interest, position, or relationship with any person, firm, or corporation that does business with the City that would influence (or could be regarded as influencing) their actions for the City. Family or relative financial interests can become a conflict for the employee. Any situation which is unclear should be reviewed with management.

2.4 Confidential Information
a. Suppliers may divulge to a City employee or employees confidential or proprietary information. Employees must handle confidential or proprietary information belonging to the City or suppliers with due care and diligence, and with proper consideration of ethical and legal ramifications and governmental regulations. City employees are expected to refer requests from the public for supplier or bidder information to the Records Management Department.

3.0 PROCUREMENT OF GOODS AND SERVICES

3.1 Policy Statement
a. The City strives to make fiscally responsible purchases of goods and services that reduce resource consumption and waste, perform as required, and promote human health and well-being.

3.2 Policy Amplification
a. All procurement of goods and services shall be made in accordance with City Council approved policies and procedures (including without limitation the City’s Municipal Code). The City utilizes a combination of formal bids, informal bids, and alternative bid procedures for the procurement of goods, professional services, and public projects 71 CITY OF ONTARIO

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based on need and threshold.

3.3 Formal Bid Procedures
a. Formal bid procedures are used for public projects exceeding two hundred thousand dollars ($200,000) or large dollar value procurements requiring a more formal procurement process. Types of procurement vehicles include:
i. Notice Inviting Bids
ii. Request for Qualifications

3.4 Informal Bid Procedures
a. Informal bid procedures are used for small to medium-sized public projects as defined in Municipal Code Section 2-6.13, and procurements for goods, services, and professional services with a defined list of attributes. Types of procurement vehicles include:
i. Invitation for Bids

3.5 Alternative Bid Procedures
a. Alternative bid procedures are used when formal or informal bidding procedures are not required for goods, services, or professional services due to low dollar value; or when the procurement is for an intended outcome versus a defined list of attributes, etc. Types of procurement vehicles include:
i. Informal Quotation
ii. Request for Quote
iii. Request for Proposal

3.6 Design Build
a. The City may utilize a design-build method of procurement for public projects in accordance with California Public Contracting Code Section 22160 et seq.

3.7 Supplier Preference
a. The City has established a local, veteran, minority, and women-owned preference to promote the community's economic health, encourage participation in the procurement process, and receive fair access to contracting and procurement opportunities within our projects.
i. For the purchase of goods (except for materials for public works projects) the City may grant suppliers located within the City limits a 1¾% advantage in the City's determination of low bid due to the ultimate receipt by the City and 72 CITY OF ONTARIO

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County of a proportionate amount of the sales tax associated with the purchase of the goods solicited.
ii. A supplier whose sales tax is reportable outside of the City (but within the County of San Bernardino) will receive a ¾% advantage in low bid determination. This section shall not apply to procurements subject to Federal funding requirements.

3.8 Standardization
a. Every effort shall be made to standardize commonly used items, vehicles, equipment, and services. Once a standard item has been determined, approval shall be obtained from City Council for repeated purchases expected to exceed $150,000 within a period of up to five (5) years. This will eliminate repetitive approvals by City Council for the same item.

3.9 Cooperative Purchases
a. The City may engage in cooperative purchasing for goods or services as a third-party agency "piggybacking" on another agency's competitively bid agreement so long as the goods or services were procured in accordance with minimum requirements of the Purchasing System. Cooperative purchasing reduces administrative expenses, secures prices, and offers other benefits of a large volume purchase. Caution must be exercised to ensure that the City complies with all applicable Federal, state, and local laws as well as the City's Purchasing System. The Purchasing Division must be consulted prior to any City Agency or Department engaging in cooperative purchasing.

The City's Municipal Code Section 2-6.23 allows for the following exceptions to the procurement methods set forth in the City’s Purchasing System:

I. Emergency – When in an emergency as defined in the Purchasing System, provided the procedures set forth in Section 2-6.24 of City’s Municipal Code are followed.

II. Sole-Source—When a City Agency or Department determines that the goods, services, or public project can only be obtained from a sole source, the Agency or Department will submit a request for non-competitive procurement to the Purchasing Division. A sole source justification shall be valid for up to one year from the date of approval by the Purchasing Division.

III. Cooperative Purchasing – When the City Council has by resolution transferred the authority to make the purchase of goods to another governmental agency through cooperative purchasing and the agency generally follows the provisions of California Government Code Sections 54201 through 54204. 73 CITY OF ONTARIO

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4.0 PUBLIC PROJECTS

4.1 Policy Statement
a. The City is subject to the California Uniform Public Construction Cost Accounting Act (“Act”) in awarding all public projects for construction work.

4.0 Policy Amplification
a. The Act permits the City to:
i. Simplify the bidding process for public projects valued up to $200,000; and ii. Minimize limits on using City employees for public works. b. Every five years, the California Uniform Construction Cost Accounting Commission reviews the bid limits for inflation and other factors to determine whether adjustments should be made to the Act. If an adjustment is made to the current thresholds represented in this Manual, the State Controller will notify the affected public agencies.

The adjustment may become effective before it appears as a formal change in the Public Contract Code (“PCC”).
c. Public projects (as defined by the Act) may be let to contract as set forth in the Purchasing System and PCC sections 22000 through 22045 in accordance with the current dollar limits as follows:
i. Public projects of $60,000 or less may be performed by the employees of the City by force account, negotiated contract, or purchase order; ii. Public projects of $200,000 or less may be let to contract by informal bid procedures as set forth in the Purchasing System and Act; and iii. Public projects of more than $200,000 shall, except as otherwise provided in the Act, be let to contract by formal bid procedure as set forth in the Purchasing System.
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5.0 FEDERAL FUNDING REQUIREMENTS

5.1 Policy Statement
a. Federal procurement standards are set forth in Title 2 of the Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (“Uniform Guidance”). The Uniform Guidance requires the City to have and use documented procurement procedures consistent with state, local, and tribal laws; and regulations and the standards of the procurement standards identified in Sections 200.317 through 200.327 of the Uniform Guidance when using certain Federal funds. This includes procurements made (i) in preparation of, during, and after an emergency declared by the President of the United States and that may be subject to Federal funding or reimbursement; and (ii) when using Federal grant funds subject to the Uniform Guidance. When procurement is subject to the Uniform Guidance, the City shall follow its document procurement procedures along with the procurement standards of the Uniform Guidance.
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6.0 AGREEMENTS AND/OR CONTRACT STANDARDS

6.0 Policy Statement
a. The City’s policy is the City Council has sole authority to approve agreements or contracts exceeding $150,000; and the City Manager or designee signs such contracts on behalf of the City Council, unless otherwise directed by City Council or provided for by law.
b. The Purchasing Officer or his/her authorized representative has sole authority to approve and sign purchase orders on behalf of the City, unless otherwise directed by the City Council or provided for by law.
c. Electronic and/or digital signatures on agreements or contracts are acceptable when in accordance with City policy and Secretary of State (Government Code Section 16.5) procedures established for digital and electronic signatures. The Purchasing Division, Records Management, and the City Attorney reserve the right to require original wet signatures on agreements or contracts when deemed to be in the best interest of the City.
d. It is the policy of the City that it remits payment for supplier invoices via electronic fund transfers through the Automated Clearing House (“ACH”) network. All payments related to agreements of $25,000 and over shall be made through electronic ACH transfers.
e. Furthermore, it is the policy of City Council to establish and require the use of contract standards to assure that the interests of the City will be protected in all agreements or contracts.

6.1 Policy Amplification
a. To preclude claims against the City, all employees shall refrain from oral or written commitments that may be construed as binding by the other party. i. All employees shall emphasize to the other party that there is no commitment or contract until an agreement or contract is signed by the City Manager or designee.
ii. Any employee that enters into an agreement or contract without the approval of City Council and/or City Manager as appropriate, or takes actions that are interpreted as commitments by a third party or leads to claims against the City, may be personally liable for any costs associated with the agreement or contract.
b. This policy will be accomplished primarily through the use of standard contracting procedures established and promulgated by the Purchasing Department of the Financial Services Agency.
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c. It is the responsibility of each Agency or Department Head to assure that:
i. Standard contracting procedures are followed in the preparation and processing of all agreements or contracts with the City Agency or Department.
ii. All applicable standard contract terms and conditions are included in all agreements or contracts.
iii. All agreements and contracts are reviewed by affected City Agencies or Departments (including the Purchasing Division) before being presented to the Office of the City Manager for approval by the City Manager or placement on the agenda for approval of City Council.
iv. All revisions and updates to this policy and applicable procedures are promptly disseminated to personnel engaged in contract preparation and administration.
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7.0 ANNUAL PURCHASE ORDERS
a. Annual Purchase Orders allow the City to purchase designated goods or services on a repetitive basis for City Agencies or Departments. Annual Purchase Orders shall be issued to a specific supplier on a per fiscal year basis and shall close at the end of the fiscal year. As the cost of the goods, services, and professional services approach the $150,000 threshold, an Agenda Report seeking approval will be submitted by the City Agency or Department to City Council.
b. The Annual Purchase Order system is for goods, services, and professional services that are purchased frequently or in large quantities by the City (provided on an “asneeded” basis). Annual Purchase Orders expedite delivery because separate requisitions are not required for each transaction. In the case of goods and certain services, the supplier agrees to supply the City’s requirements at either a fixed price or at a fixed discount from the list market price. The Purchasing Officer will determine the goods, services, and professional services allowed by the Annual Purchase Order system.
c. Purchases by the Annual Purchase Order system include, but are not limited to, any expenditure that is recurring and is a reasonably predictable operating expense. d. Only those items specified within the Annual Purchase Orders may be ordered using the Annual Purchase Order. Items not allowed under the Annual Purchase Order system shall be ordered in accordance with the City’s purchasing policies and procedures:
i. Using Agency or Department shall contact the supplier for a Quote or estimate, referencing the Annual Purchase Order, to confirm pricing matches negotiated pricing.
ii. Using Agency or Department must review the quoted price and ensure compliance with the terms of the Annual Purchase Order. iii. Using Agency or Department shall ensure it has adequate budget funds for the proposed expenditure.
iv. Using Agency or Department shall submit a requisition, which includes the quote or estimate, to the Purchasing Division noting the Annual Purchase Order it plans to utilize.
v. Once the good is received or service accomplished, the invoice from the supplier shall be submitted to the Accounts Payable Division following the normal payment process for invoices.
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8.0 RECYCLED PRODUCT PROCUREMENT

8.1 Policy Statement
a. In the procurement of goods for the City, a preference shall be given for the purchase of recycled goods whenever equal in fitness and quality and available at no more than the total cost of non-recycled products in accordance with Sections 2-6.30 and 6-3.701 of the City’s Municipal Code.

8.2 Policy Amplification
a. It is the purpose of this policy to encourage purchasing decisions that (1) increase the recycled content of goods purchased and used by the City, (2) reduce waste in the manufacture and use of goods and packaging purchased by the City, (3) and to provide guidance to City staff in evaluating the purchase of goods for City use.
b. The objective is to ensure that no good manufactured with recycled or secondary material is treated differently other than based on function. A secondary objective is to prefer recycled goods over goods made strictly with virgin materials when recycled goods can meet the necessary performance standards. 79 CITY OF ONTARIO

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9.0 SURPLUS PERSONAL PROPERTY

9.1 Policy Statement
a. The City’s policy regarding disposition of City-owned surplus personal property is outlined in Section 2-6.31 of the City’s Municipal Code. The Purchasing Officer is authorized to dispose of surplus goods which are not used or needed by any Using Agency or which have become unsuitable for City use. The City prohibits employees from acquiring surplus items sold through auction.

9.2 Policy Amplification
a. Timely identification of surplus and obsolete goods is essential to an effective disposition program. Higher maintenance and storage costs and further deterioration of the goods are the result of delayed identification of surplus. i. Declaration of Surplus Goods. Using Agencies that determine certain goods to be of no use to their Agency must complete a "surplus property transaction request" and forward it to the Purchasing Officer for review and subsequent declaration as being surplus.
ii. Custody of Surplus Goods. Each Using Agency shall retain custody of its surplus goods until their transfer or final disposition has been determined. No Using Agency shall (in any event) permit any surplus goods held by it to be loaned or donated without prior City Council approval, or destroyed or otherwise removed from the City's custody without the prior written approval of the Purchasing Officer.
iii. Transfer. Before disposing of surplus goods, the Using Agency shall canvass all other Using Agencies to determine whether another City Agency can use the surplus goods. If another Agency desires to use the goods, the Purchasing Division shall assist in transferring the goods to that Agency.
iv. Disposition. The Purchasing Officer is hereby authorized to dispose of surplus goods which are not used or needed by any Using Agency or which have become unsuitable for City use. Such goods may be disposed of by any of the following procedures:
• Exchanged or traded in on new goods;
• Sold utilizing competitive procedures similar to those prescribed herein for open market procurement;
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• Sold at public auction conducted by a professional
auctioneer;
• Sold utilizing a negotiation process when the
Purchasing Officer deems that such process is in the
best interests of the City;
• Disposed of as scrap material or destroyed if no resale value exists; or
• Donated to a non-profit organization or other public
entity following a City Council determination that such donation would serve a public purpose.
v. Once a good has been identified for surplus disposal, the Using Agency submits a request to the Purchasing Officer identifying the disposing procedure with approval from the Head of the Using Agency.
vi. If there is an asset number associated with the surplus goods, the asset number needs to be identified to alert the Accounting Division to have the asset removed from the asset list. vii. Once all approvals are obtained, a notification of the approved surplus request is routed to the requestor for filing and/or further action.
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10.0 PROCEDURES

10.1 PROCUREMENT AND PURCHASING AUTHORITY

10.2 Purchasing Division
a. The Purchasing Division is charged with interpreting and enforcing the City's purchasing policies and procedures. The Purchasing Division is authorized to issue purchase orders, contracts or agreements, and change orders; and is directed to oversee their implementation and its operations in accordance with the rules and regulations prescribed by City Council and the administrative procedures approved by the City Manager.

10.3 City Manager
a. The City Manager is authorized to execute written agreements or contracts (along with amendments or change orders) for all goods, services, professional services, and public projects with a cumulative term of up to five (5) years for which the cumulative value of the agreement or contract (inclusive of all amendments and/or change orders) does not exceed the City Manager's purchasing authority limit as may be established from time to time by resolution or other order of City Council.
b. If an amendment or extension to an agreement results in a financial commitment that exceeds the City Manager's purchasing authority or the five (5) year term limit, City Council authorization is required. The Agenda Report to the City Council shall include an identification of the annual and/or total expected cost and term of the agreement. c. Amendments or extensions to agreements or contracts that exceed the City Manager's purchasing authority or the maximum term limitation (and City Council authorization is not obtained) require a new procurement process. A non-competitive justification does not preclude City Council authorization requirement.
d. The City Manager is authorized to execute written public project agreements or contracts within his or her purchasing authority limit. Change orders to public project agreements or contracts that exceed 75 percent of the approved contingency shall be signed by the City Manager.
e. The City Manager may delegate authorities granted by the City’s Municipal Code Section 2-6.26 to subordinates provided that such delegation be made in writing and signed by the City Manager.

10.4 City Departments
a. Agency Heads and Department Heads, or their designees, consistent with the City's designated purchasing approval limits are authorized to approve and submit all purchase requisitions.
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11.0 COMPETITIVE PROCUREMENT
a. Competition in purchasing provides equal opportunity for qualified suppliers to compete for City business and for City personnel to secure the best price, quality, and service.

When bids are required, they are to be conducted on an open and competitive basis and without favoritism or bias in order to maximize the best value to the City and the procuring City Agency and/or Department. The bids of interested suppliers shall receive fair and impartial consideration.
b. The rules and regulations established by the City are intended to secure sound value, to guard against favoritism and profiteering at public expense, and to promote the interest of private enterprise and the health of the local economy. To further this objective, the City has elected to utilize an electronic bid management system as provided by Municipal Code Section 2-6.07 to (1) enhance the efficient procurement of goods, services, professional services, maintenance work and public projects, (2) encourage competition for public contracts, and (3) to purchase at the lowest competitive market price without favoritism or prejudice.
c. The estimated cost of each purchase is considered when determining the level of competition necessary. This ensures that the benefit derived from the competitive process justifies the cost of administering the process and that all legal requirements are met. Procurements shall not be split to circumvent dollar limits associated with procurement procedures.
d. Encouraging competition is a means by which the City can mitigate the potential for antitrust activity. A Non-Collusion Declaration is mandated by Public Contract Code Section 7106 and shall be completed in the procurement of all public projects. The NonCollusion Declaration can be found on the City’s Intranet. 83 CITY OF ONTARIO

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12.0 NON-COMPETITIVE PROCUREMENT
a. Full and open competition should be the objective in public procurement; but it is not always possible or practicable. When procuring goods or services, City staff may determine the best value to the City may be achieved by pursuing a non-competitive procurement with a specific supplier due to technological, specialized, or other unique characteristics. Otherwise, as long as there is more than one potential supplier available to satisfy a given need, there exists insufficient justification for a non-competitive procurement.

12.1 Non-Competitive Purchases
a. A non-competitive purchase must be supported by written justification that thoroughly explains the need and reason for the requested course of action. A Non-Competitive Justification Form validates to the Purchasing Division of only one viable supplier for the procurement of the goods and/or services. It must be signed by the Agency or Department Head and submitted with the requisition or agreement or contract packet for the approval of the Purchasing Officer. With its submission of the Non-Competitive Justification form, the Department shall attach a detailed written rationale for the use of only one supplier and not competitively bidding the needed goods or services. b. The following factors are among those that constitute justification for non-competitive purchases:
i. The supplier is determined to be the only known source of the goods or services after solicitation of several suppliers, or seeking competitive bids and competition is determined to be inadequate.
ii. The goods can only be procured directly from the original manufacturer or sole representative of the item in the City's geographical region. iii. There is a reasonable basis to conclude the City's minimum needs can only be satisfied by unique goods or services and the supplier demonstrates a unique qualification due to:
• An innovative concept or a unique capability to provide the particular services proposed;
• Proven expertise or specialized knowledge in a field of few known experts;
• Previous experience providing like services to the City resulting in an understanding of City's immediate needs and practices increasing the likelihood of greater efficiency and success;
c. The use of a piece of equipment or commodity would require modifications to existing equipment, necessitate engineering re-design, or require voiding of a warranty. 84 CITY OF ONTARIO

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d. Goods may be deemed available only from the original source in the case of a followon contract for the continued development or production of a major system or highly specialized equipment, including major components thereof, when it is likely that award to any other source would result in:
i. Substantial duplication of cost to the City that is not expected to be recovered through competition.
e. City property is released to a proven supplier who must dismantle equipment in order to assess repair needs and it is not practical or feasible to obtain competitive pricing for repair.
f. The existence of limited rights in data, patent rights, copyrights, or secret processes for the goods.
g. When only specified makes and models of technical equipment and parts will satisfy the City's needs for additional units or replacement items and only one source is available in accordance with the City's standardization program.
h. The item is one with which staff members who will use the item have specialized training and/or expertise and retraining would incur substantial cost in time and/or money. i. Purchase of property for which it is determined there is no functional equivalent. j. Existence of an unusual and compelling urgency (emergency purchase) with serious potential repercussions for the City resulting in the impracticality of a competitive purchase.
k. When the City determines (with the advice of legal counsel) that seeking competition would not produce an advantage, competitive bidding requirements may be waived.

12.2 Emergency Purchases
a. Emergency – When in an emergency, as defined in the Purchasing System, provided the procedures set forth in Section 2-6.24 of City’s Municipal Code are followed.

Municipal Code Section 2-6.24, Emergency Procurements:
i. In cases of emergency when repair or replacements are necessary, the City Council (pursuant to a four-fifths vote of the City Council) may proceed at once to replace or repair any public facility without adopting plans, specifications, strain sheets, or working details or giving notice for bids to let contracts in accordance with California Public Contract Code Sections 22050 et seq. Before the City Council takes any action pursuant to this subdivision (a), it shall make a finding that the emergency will not permit a delay resulting from a competitive solicitation for bids and that the action is 85 CITY OF ONTARIO

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necessary to respond to the emergency based on substantial evidence set forth in the minutes of its meeting.
ii. Pursuant to California Public Contract Code Section 22050, Subdivision (b)(1), the City Council hereby delegates to the City Manager or designee the authority to repair or replace a public facility, take any directly related and immediate action required by that emergency; and procure the necessary equipment, services, and supplies for those purposes without giving notice for bids to let contracts. iii. If the City Manager or designee orders any action specified in subdivision (a), that person shall report to the City Council (at its next meeting required pursuant to this section) the reasons justifying why the emergency will not permit a delay resulting from a competitive solicitation for bids and why the action is necessary to respond to the emergency.
iv. (1) If the City Council orders any action specified in subdivision (a), the City Council shall review the emergency action at its next regularly scheduled meeting; and, except as specified below, at every regularly scheduled meeting thereafter until the action is terminated to determine (by a four-fifths vote) that there is a need to continue the action
(2) If the City Manager or designee orders any action specified in subdivision (a), the City Council shall initially review the emergency action not later than seven (7) days after the action, or at its next regularly scheduled meeting if that meeting will occur not later than fourteen (14) days after the action; and at least at every regularly scheduled meeting thereafter until the action is terminated to determine (by a four-fifths vote) that there is a need to continue the action (unless the City Manager or designee has terminated that action prior to the City Council reviewing the emergency action and making a determination pursuant to this subdivision). (3) When the City Council reviews the emergency action pursuant to subdivision (1) or (2), it shall terminate the action at the earliest possible date that conditions warrant so that the remainder of the emergency action may be completed by giving notice for bids to let contracts.
b. Pursuant to Municipal Code Section 4-3.06(a), the Director of Emergency Services is hereby empowered to:
i. Request the City Council to proclaim the existence or threatened existence of a “local emergency” if the City Council is in session, or to issue such proclamation if the City Council is not in session. Whenever a local emergency is proclaimed by the Director of Emergency Services, the City Council shall take action to ratify the proclamation within seven (7) days thereafter or the proclamation shall have no further force or effect; and obtain vital supplies, equipment, and such other properties found lacking and needed for the protection of life and property and to bind the City for the fair value thereof (and, if required immediately, to commandeer the same for public use).
ii. In the absence of the Director of Emergency Services, the Assistant Director of Emergency Services is empowered to take on the powers of the 86 CITY OF ONTARIO

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Director of Emergency Services under Section 4-3.06(a) of the City’s Municipal Code. In the absence of both the Director of Emergency Services and the Assistant Director of Emergency Services, the Emergency Manager is empowered to take on the powers of the Director of Emergency Services under Section 4-

3.06(a) of the City’s Municipal Code. The Director of Emergency Services shall be deemed absent where he or she is unavailable to participate in meetings or otherwise is unable to perform his or her duties during an emergency. 87 CITY OF ONTARIO

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13.0 PROCUREMENT CARDS

13.1 Procurement Card Purchases
a. This policy and procedures document aims to provide clear direction for City departments to request and oversee the use of procurement cards (“Procurement Card”) assigned and utilized by authorized City employees. The Procurement Card program has been established to provide a convenient means to make purchases and reduce the costs associated with initiating and paying for those purchases. It will assist in reducing the cost of processing small dollar purchases, expedite delivery of required merchandise, and simplify the payment process. This policy establishes the minimum standards for departments administering the Procurement Card program. Departments may establish additional controls beyond those established by these procedures. b. The Procurement Card represents the use of public funds; therefore, cardholders must know that their purchases represent the City’s interests and reputation for ethical and prudent business dealings.

13.2 Procurement Card Issuance
a. To request a Procurement Card to a City employee, the City Agency or Department Head must complete a Procurement Card Request form and submit the form to the Purchasing Division. The form includes the respective employee’s information, the expected types of purchases to be made and the requested card limit. The form is signed by the employee signifying the employee’s understanding of the rules governing use of the Procurement Card.
b. Upon receipt of the Procurement Card Request Form, the Purchasing Division will coordinate the issuance of the Procurement Card through the issuing bank, or the bank serving the City as applicable. When the Purchasing Division receives the Procurement Card, the cardholder will be notified to make arrangements to pick up the card and sign that he/she has accepted the Procurement Card.
c. Each Procurement Card holder must activate his/her own Procurement Card. Activation instructions are enclosed with the cardholder’s Procurement Card, and activation should be done immediately so the Procurement Card’s initial activation instructions do not expire.
d. It is MANDATORY that all Procurement Card holders review the Procurement Card policies and procedures prior to use. Additionally, the Purchasing Division will conduct training for all cardholders. Each cardholder will be required to sign a form that he/she acknowledges these Procurement Card policy and procedures. e. The Procurement Card is for the exclusive use of the cardholder. The unique Procurement Card that the cardholder receives has both the City and the cardholder’s name embossed on the Procurement Card. No member of the cardholder’s respective 88 CITY OF ONTARIO

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Department, his/her family, or anyone else may use the Procurement Card. The Procurement Card has been labeled to avoid confusing it with the cardholder’s personal credit cards, with the words “Cal-Card” or “State of California” on the top of the card.

In all other respects, this is a regular credit card. THE CITY’S PROCUREMENT CARD SHALL NOT BE USED FOR PERSONAL PURCHASES. Although the Procurement Card is issued to a cardholder, it remains City property and may be rescinded at any time.

13.3 Procurement Card Use
a. Use of the Procurement Card requires the cardholder adhere to all City policies and procedures on procurement, including competitive bidding and the benefit of volume discounts or volume arrangements that the City has negotiated with selected suppliers over time.
b. This Manual limits single purchases (inclusive of sales tax and shipping charges) to $5,000, or the amount established by the cardholder’s Department for that cardholder. c. In addition, each Procurement Card has a monthly dollar purchasing limit. Each single purchase may be comprised of multiple items, but the total cannot exceed the single purchase dollar limit on the Procurement Card as established by the cardholder’s department. Cardholders shall follow the City’s procedures to ensure that sufficient funds are available in the budget line item, prior to making a purchase. Purchases shall not be split to circumvent purchasing regulations.
d. The cardholder may use the Procurement Card at any merchant that accepts VISA Procurement cards. If a supplier does not accept Procurement Cards, the cardholder may contact the Purchasing Division with the supplier’s contact information so efforts can be made to set up that supplier for Procurement Card acceptance. Before signing the draft, the cardholder shall verify that the dollar amount is correct, and that sales tax has been included. The cardholder will be provided one copy of the signed sales draft, which he/she shall keep for reconciling the monthly Cardholder Statement of Account. e. Any changes to the cardholder’s information shall be immediately reported to the Purchasing Division. The Purchasing Division will notify the issuing bank of the changes and request a new card. If a replacement card is requested, the Procurement Card cardholder will be notified when the new card is available.
f. Contact the Purchasing Division to request a current Procurement Card be changed or cancelled via email or memorandum. Upon notification to the Purchasing Division, cut the Procurement Card in half or return it to the Purchasing Division in person. g. Report lost or stolen cards immediately to the Purchasing Division. 89 CITY OF ONTARIO

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13.4 Procurement Card Restrictions
a. The Procurement Card must not be used to purchase the following items:
i. Alcoholic beverages
ii. Weapons
iii. Cash advances through bank tellers or teller machines, or money orders iv. Legal fees, court costs, fines, bails, or bonds
v. Fixed asset purchases (an item or equipment with a cost of $15,000 or more) vi. Any personal items and personal services, even if the intent is to repay the City at a later date
vii. Rental or lease payments
viii. Purchase of telephone services including pagers and calling cards, except for business telephone calls charged to a hotel/motel room while traveling on City business
ix. Fees for Upgrades of Air, Hotel (including early check-in), or Auto; unless preapproved by the City Manager or designee x. Using the Procurement Card to circumvent normal purchasing steps in order to buy a product from a relative or close friend

13.5 Unauthorized Use of Procurement Card
a. Unauthorized use of the Procurement Card, including personal use of the Procurement Card or failure to adhere to the Procurement Card Program guidelines, shall result in the cancellation of the cardholder’s use of the Procurement Card. b. Upon an unauthorized use of the Procurement Card, the cardholder and their respective Agency or Department head will have three (3) working days to submit a written justification (email or memorandum) to the Purchasing Officer. c. If a justification is not received or the offense is deemed a violation, the Procurement Card may be suspended. If a second unauthorized use occurs within a six (6) month period, and a written justification is not received or the use is deemed a violation, the cardholder’s use of the Procurement Card system shall be suspended for three (3) months.
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cardholder may result in disciplinary action. Fraudulent use of the Procurement Card may be referred to a law enforcement agency.

13.6 Procedures After Purchase
a. All receipts must be turned in monthly with the Procurement Card statement so they can be reconciled. At the close of each billing cycle, the cardholder will receive a Cardholder Statement of Account. The statement itemizes each transaction that was charged to the Procurement Card. Upon receipt of the statement, the cardholder must complete each of the following actions:
i. Review the statement to verify that the cardholder purchased all items listed, and the amounts charged are correct;
ii. Indicate the account string to be charged for each transaction; iii. Provide a brief description of the item(s) purchased for each transaction. For meals, receipts must itemize the meals ordered and document the meeting type and attendees;
iv. Attach detailed sales receipts reflecting each item purchased; v. If an item purchased is returned, attach the credit voucher to the Statement of Account on which the credit appears;
vi. If charged for an item incorrectly, try to resolve the problem with the merchant first. Provide a complete explanation of the error and attach it to the Statement of Account; and
vii. After completing the above, sign and date the Cardholder Statement of Account.

Thereafter, route the entire documentation to the respective Department Head for signature approval and then route the packet to the Accounts Payable Division for payment processing.
b. Please note that banks issuing Procurement Cards have operating regulations with specific timeframes established in which reversals of charges may be processed. c. Upon separation from the City, it is the responsibility of the cardholder to notify the Purchasing Division of the separation and to surrender the Procurement Card to his/her authorizing manager for return to the Purchasing Division. Procurement Cards are to be returned to the Purchasing Division in person.

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14.0 PROCUREMENT SELECTION METHODS

14.1 Debarment
a. Public Contract Code 6109 prohibits contractors or subcontractors to bid on, be awarded, or perform work on a public works project if they are debarred pursuant to Sections 1771.1 or 1777.7. Before awarding a contract to a contractor, the Department shall check with the California Department of Industrial Relations (dir.ca.gov), the Department of Consumer Affairs Contractors State License Board (cslb.ca.gov), and the System for Award Management (sam.gov) database to ensure the contractor is currently registered with the State of California to perform the work required and is not debarred from participating in solicitations.

14.2 Electronic Bidding
a. The City’s electronic bid management system shall be utilized to issue City solicitations, unless allowed by Appendix A or the Purchasing Officer deems the solicitation can be procured differently.

14.3 Solicitation Types
FORMAL BID PROCEDURE: The formal bid procedure shall be for all public projects exceeding two hundred thousand dollars ($200,000), or large dollar value procurements for goods or services. Types of procurement vehicles include:
a. Notice Inviting Bids (“NIB”): NIB is a formal procurement process released through the electronic bid management system and award may require a negotiated agreement or contract.
i. Shall state the time and place for the receiving and opening of sealed bids and distinctly describe the project.
ii. Shall be published at least fourteen (14) calendar days before the date of opening the bids in a newspaper of general circulation, printed and published in the jurisdiction of the City.
iii. Shall be sent electronically, if available, by either facsimile or electronic mail and mailed at least fifteen (15) calendar days before the date of opening the bids to all construction trade journals specified in California Public Contract Code Section 22036.
iv. Shall include a general description of the items to be purchased and shall state where bid forms may be obtained and the date, time, and place of bid opening.
v. Bidders list shall be made available to all responsible, prospective suppliers known to City staff and others requesting, in writing, to participate in the bid process.
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vi. If awarded, the bid will be awarded to the responsible bidder who submits the lowest responsive bid. Unless provided otherwise by law, the City shall have the right to waive any defect or informality in the bidding or in the procedures set forth in this section. Unless provided otherwise by law, no defect of informality shall void any contract entered into. b. Request for Proposal (“RFP”): RFP may be used for non-public works projects or procurements whenever the City has identified a desired outcome, and the supplier is asked to propose a solution in response to the City’s provided statement of work or specifications. The City may ask the suppliers to quote on the original specifications and to indicate how the quotation would be changed if the supplier's suggestion is followed. RFP procurement is released through the electronic bid management system.
i. This solicitation type will include a combination of the following elements:
• Statement of Work or Specifications
• Schedule or Timelines
• Deliverables
• Sample Contract
• Terms and Conditions
• Special Contractual Requirements
• Submittal Instructions
• Evaluation Criteria
ii. RFPs are not typically appropriate for award to the lowest responsible proposer submitting a responsive proposal.
iii. Award of an agreement or contract may be made to the most technically responsible proposer whose proposal provides the highest rated solution to the City based on the proposal and evaluation criteria and will require a negotiated agreement or contract.
c. Request for Qualifications (“RFQ”): City Council Resolution 2003-011 adopted bidder pre-qualification procedures and documents for public projects to streamline the bidding process by focusing staff efforts on the review and evaluation of only those bid responses submitted by prequalified bidders. It is highly recommended that this process be used for high dollar public projects. 93 CITY OF ONTARIO

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INFORMAL BID PROCEDURES: Small to medium sized public projects as defined in Municipal Code Section 2-6.13 and procurements for goods, services and professional services with a defined list of attributes. Informal bid processes are released through the electronic bid management system and award may require a negotiated agreement or contract. Types of procurement vehicles include:
a. Invitation for Bid (“IFB”):
i. All procurements for small or medium public projects shall follow the procurement procedures found under Municipal Code Section 2-6- 18 Informal Bid Procedure.
ii. All plan holders shall receive an invitation to bid. iii. Informal bid contracts shall, whenever possible, be based on at least three (3) responsive bids.
iv. Shall be awarded to the lowest responsible bidder, consistent with quality and delivery requirements.
v. The City’s standard term for an agreement is three (3) years with two (2) one-year options.

ALTERNATIVE BID PROCEDURES: When formal or informal bidding procedures are not required for goods, services, or professional services due to low dollar value, when the procurement is for an intended outcome versus a defined list of attributes, etc. Types of procurement vehicles include:
a. Informal Quotation (“quote”):
i. The quote procedure may be utilized for the procurement of goods, services, and professional services when the total value (inclusive of all taxes, delivery charges and fees) does not exceed $10,000 (per supplier, project, scope, or type of goods per Agency or Department).
ii. A Purchase Order may be issued for goods and for services with approved documentation.
iii. The City’s standard term for an agreement is three (3) years with two (2) one-year options.
iv. Award is based on best value.
b. Request for Quote (“RFQ”):
i. The RFQ procedure may be used for the procurement of goods, services, and professional services when the total value (inclusive of all taxes, delivery charges and fees) does not exceed $25,000 (per supplier, project, scope, or type of goods or services per Agency or Department).
ii. The City’s standard term for an agreement is three (3) years with two (2) one-year options.
iii. Award is based on best value.
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c. Request for Proposal (“RFP”):

RFP may be used for non-public works projects or procurements whenever the City has identified a desired outcome, and the supplier is asked to propose a solution in response to the City’s provided statement of work or specifications.

The City may ask the suppliers to quote on the original specifications and to indicate how the quotation would be changed if the supplier's suggestion is followed. RFP procurement is released through the electronic bid management system.
i. This solicitation type will include a combination of the following elements:
• Statement of Work or Specifications
• Schedule or Timelines
• Deliverables
• Sample Contract
• Terms and Conditions
• Special Contractual Requirements
• Submittal Instructions
• Evaluation Criteria
ii. RFPs are not typically appropriate for award to the lowest responsible proposer submitting a responsive proposal.
iii. Award of an agreement or contract may be made to the most technically responsible proposer whose proposal provides the highest rated solution to the City based on the proposal and evaluation criteria and will require a negotiated agreement or contract.

DESIGN BUILD
a. The City may utilize a design-build method of procurement for public projects in accordance with California Public Contracting Code Section 22160 et seq. 95 CITY OF ONTARIO

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15.0 AGREEMENTS AND/OR CONTRACTS
a. The City utilizes written contracts to document each party's obligation and to minimize the City's risks during the performance of work. The written contract often incorporates much more detail than a purchase order alone can provide, especially related to the operating terms and conditions and the details of the transaction itself. Contracts include standard terms and conditions that serve as the framework and a statement of work that serves as the substance of the contract. During the course of the relationship between the parties, the contract serves as a point of reference which may quickly resolve any misunderstanding.
b. When a Purchase Order and/or agreement or contract reaches or exceeds $150,000, an Agenda Report documenting City Council approval needs to be submitted to Purchasing authorizing the expenditure. If the contract is over multiple years (with set dollar values per year), the original Agenda Report submitted to Purchasing is generally sufficient to cover the period of performance of the Purchase Order and/or agreement or contract (inclusive of optional years) if so stated in the original Agenda Report with delegated signature authority to the City Manager.
c. Generally, the following situations are among those requiring written agreements in addition to a Purchase Order:
i. Professional and consulting services
ii. Construction services
iii. Design services
iv. Maintenance services
v. Removal of hazardous materials
vi. Major software license agreements
vii. Work that takes longer than one year to complete
viii. Goods purchased that need to be serviced by the same Supplier d. The City’s contract templates can be found on the City’s Intranet. The City Agency and/or Department shall be responsible for ensuring that the most current contract template is used. Purchasing is responsible for updating the contract templates on the City’s Intranet.
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15.1 Terms
a. The City’s standard agreement or contract term for ongoing services is three (3) years with two (2) one-year options, to be exercised at the City's discretion. The City requires all agreements and/or contracts to have defined effective dates. Auto-renewal language is NOT acceptable for agreements or contracts executed by the City.

15.2 Contingency
a. In order to mitigate delays due to unforeseen occurrences and minimize administrative costs associated with completion of procurements, all Departments have authority to exercise a standard contingency of up to 10 percent for any type of service contract or agreement. Exercising a contingency of 10 percent or less will not require City Manager or City Council action; however, any contingency amount in excess of 10 percent will require an amendment or change order with City Manager approval if the dollar commitment is within his signature authorization limit (or Council action if in excess of the City Manager's authority).
b. Construction change orders up to 75 percent of the City Council approved contingency amount may be approved by the Agency Head, contingency in excess of 75 percent City Council approved contingency amount shall require City Manager’s signature.

15.3 Department Concurrence
a. Business License:
i. City Agencies and/or Departments submitting agreements and/or contracts must confer with the City’s Business License Department to determine if a business license is required for the work. If the Business License Department indicates that a business license is not required for the proposed work, then documentation needs to be included in the submission to Purchasing.
ii. “Business” includes any business, commercial enterprise, trade, calling, vocation, profession, occupation, or means of livelihood (whether or not carried on for gain or profit). “Evidence of doing business” shall include but not be limited to a person's use of signs, circulars, cards, telephone books, newspapers, or trade publications to advertise, hold out, or represent that such person is doing business within the City; when any person gives other evidence of transacting and carrying on business within the City; or when such person fails to deny in a sworn statement given to the License Official that such person is not engaged in business within the City after being requested to do so by the License Official. An example of a potential exemption is a nonprofit business exempt from paying Federal income tax by virtue of nonprofit status.
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b. City Attorney: When negotiations between a City Agency and/or Department and a supplier require changes to a contract template (or the supplier 's contract may be substituted for a City contract), documentation that the City Attorney’s Office approved such changes need to be included in the submission to Purchasing. c. Communications and Community Relations Department: Authorization by the Communications and Community Relations Department is required for procurement of all graphic and/or printing services by outside suppliers for:
i. Graphic Design;
ii. Print Services (all outsourced printing); and
iii. Promotional/Advertising Items using the City logo/marketing mark (including promotional items, apparel, etc.).
• The Communications and Community Relations Department will review the request for said services to determine if in-house services can be provided in-lieu of outsourcing or if it is in the best financial and uniformity interest to outsource the work. If the decision is made to outsource the work, the Communications Department will liaison with contracted suppliers. City Agencies and/or Departments must email the following to initiate this request: [email protected].
• For all promotional and/or advertising items, requests with mock proofs must be sent to [email protected] for approval on use of the City logo/marketing mark to ensure uniformity of standards on use are being met prior to the purchase of items.
d. Human Resources: Authorization by the Human Resources Department (“HR”) is required for procurement of all staffing services by outside suppliers for temporary, part-time, interim, or related personnel services (include documentation in the submission to Purchasing that HR has approved the request).
e. Information Technology Services: If the proposed statement of work will impact the City’s Information Technology (“IT”) hardware or software infrastructure, include documentation in the submission to the Purchasing Division that IT has approved the services.
f. Risk Management: Subject to Risk Management Department approval, insurance requirements may be waived in contract when there is low risk to the City. If an insurance provision is waived by the Risk Management Department, include documentation from the Risk Management Department of such waiver.
98 CITY OF ONTARIO

ADMINISTRATIVE POLICY
[FSA-002] (EFF 03/25) 34

16.0 PURCHASE ORDER EXCEPTIONS
a. Invoices may not be utilized as backup documentation with a requisition to request generation of a Purchase Order (“PO”). Invoices must be approved utilizing the Accounts Payable approval process and submitted directly to the Accounts Payable Department. b. Some purchases are not readily adaptable to the PO process. These purchases are usually for items where the competitive process is not applicable. These purchase exceptions are submitted to the Accounts Payable Division for payment processing. The following are allowable exceptions*:
• Asset seizure payments/evidence reimbursements
• City, County, State, Federal, or other municipality’s services • City Procurement Cards
• Collection services
• Office and Janitorial supplies approved via Staples, Grainger, Waxie, Amazon • Dues, Memberships, and Digital Subscriptions (Ex. Newsletters, Grammarly, Snagit) (Digital Subscriptions Exclude IT Software Renewals and Maintenance Agreements) • Escrow fees and closing and rehabilitation loans (wire transfers) • Federal Express service & United Parcel Service (Delivery Services) • Fiscal agent trustee fee
• Instructors and sports officials
• Leases and rentals
• Legal services
• Display and recruitment advertising
• Mail sorting services
• Payroll deductions
• Physical exams and medical treatments
• Post Office fees and permits
• Property acquisition costs
• Property profile (lot book reports)
• Refunds, rebates, and reimbursements (including petty cash) • Relocation payments
• School Tuition
• Temporary agency employees
• Travel, conferences, meeting, and training expenses
• Utility deposits and services
*Purchasing reserves the right to require an agreement and/or Purchase Order be issued for any of the above listed items, if deemed necessary or in the best interests of the City. 99 City of Ontario
Purchasing Policies and Procedures Manual
REVISED July 2024

SUPPLEMENTAL

REFERENCES

ATTACHMENTS
• Appendix A – Purchasing Thresholds
• Appendix B – Authorization Recap
• Appendix C – Contract Matrix

REVISIONS
Review Date Revision
June 30, 2023
June 30, 2024
March 18, 2025
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City of Ontario
Purchasing Policies and Procedures Manual
REVISED July 2024

APPENDIX A

PURCHASING THRESHOLDS
All values below include all taxes, fees, and shipping/freight charges. a. $0 - $25,000 (Goods, Services and Professional Services):
i. Although the use of the electronic bid management system is not required, the requisition requires the submittal of a minimum of one (1) Quote. ii. For services and professional services, including all applicable documents (e.g., a valid Business License, Risk Management approved insurance, etc.). iii. The award for goods is based on the lowest responsive and responsible bidder and the best value for professional services.
iv. A purchase order for goods, services, or professional services may be issued. b. $25,001 - $60,000 (Goods, Services and Professional Services):
i. Use of the electronic bid management system is not required. ii. Whenever possible, shall be based on three (3) or more responses of an RFQ or an RFP process. To be considered competitive, you should obtain at least two (2) responses and submit them with the requisition.
iii. The award for goods is based on the lowest responsive and responsible bidder and the best value for professional services.
iv. For services, a negotiated agreement or contract is required. c. $60,001 - $150,000 (Goods, Services and Professional Services):
i. Use of the electronic bid management system to issue a NIB or an RFP. ii. Newspaper advertisement is not required.
iii. Award based on best value, department required to justify selection. iv. For services, an agreement or contract is required. d. $150,001 and above (Goods, Services and Professional Services):
i. Use of the electronic bid management system to issue NIB or RFP. ii. Bid awarded based on best value. Department required to justify selection. iii. Professional services solicitation requires procurement by RFP procurement and evaluation based on the professional qualifications necessary for the satisfactory performance of the services needed.
iv. RFP evaluation factors and their relative importance must be identified in the RFP. The City must have a written method for conducting the evaluation and selection of the supplier.
v. City Council action is required.
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PUBLIC PROJECTS:

With reference to Public Contract Code sections 22030 through 22045: Article 3. Public Projects:

Alternative Procedure
a. Up to $60,000 (IFB)
May be performed {1} with City employees, or {2} with a qualified, properly licensed contractor using a negotiated Purchase Order and agreement or contract. i. If City staff {1} is used, proper codes for Accounting and charging time and material is required.
ii. If a contractor {2} is used and project exceeds $1,000, prevailing wages are required. iii. Payment bond equal to 100% of the contract required when >$25,000. A performance bond is recommended.
iv. A negotiated contract is required.
b. $60,001 - $200,000 (IFB):
i. Staff must follow the Act and the Informal Bid Procedure (see Purchasing Policies and Procedures and Purchasing System).
ii. Prevailing Wages are required.
iii. Bid bond equal to 10% of the bid price and payment bond equal to the contract price are required. Performance bond is strongly recommended.
iv. A negotiated contract is required.
c. $200,001 and above (NIB):
i. Staff must follow the Act and the Formal Bid Procedure (see Purchasing Policies and Procedures and Purchasing System).
ii. Prevailing Wages are required.
iii. Bid bond equal to 10% of the bid price and payment bond equal to the contract price are required. Performance bond is strongly recommended.
iv. A negotiated contract is required.
d. City Council action required for any procurement exceeding $150,000. i. Once a Purchase Order and/or agreement or contract exceeds the $150,000, City Council approval is required for each future dollar amendment.
• This includes each optional year unless the total dollar value approved by City Council for authority delegated to City Manager is inclusive of the dollar values of all optional years. Once that dollar value threshold has been exceeded the agreement is required to go back to City Council for approval. • The $150,000 threshold is not limited to a fiscal year and it does not reset to zero at the beginning of the new fiscal year.
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Purchasing Policies and Procedures Manual
REVISED July 2024

APPENDIX B

AUTHORIZATION RECAP
Dollar
Threshold Purchase Type* Agreement Type* Authorization Requirement $0 - $25,000 Goods, Services and
Professional Services Purchase Order
Agency or Department
Head, City Manager or
Designee
$25,001 -
$60,000
Goods Purchase Order
Agency or Department
Head, City Manager or
Designee
Goods, Services, Public
Projects, and Professional
Services
Agreement and
Purchase Order City Manager or Designee
$60,001 -
$150,000
Goods Purchase Order
Agency or Department
Head, City Manager or
Designee
Goods, Services, Public
Projects, and Professional
Services
Agreement and
Purchase Order City Manager or Designee
$150,001 +
Goods, Services, Public
Projects, and Professional
Services
Agreement and
Purchase Order
City Council (Approval)
City Manager or Designee
(Executes Agreement)
For examples and thresholds for Purchasing and Agreement Types, see Appendix A, Purchasing Thresholds
i. Executive Director Community Life & Culture is authorized to execute Entertainment Agreements or Contracts up to $10,000.
ii. Executive Director of Public Works is authorized to execute Public Works Agency operations related purchase agreements and contracts up to $50,000. iii. Utilities General Manager is authorized to execute Water & Sewer operations related Agreements or Contracts up to $50,000.
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APPENDIX C
CITY OF ONTARIO - CONTRACT MATRIX - JULY 2024

TYPE OF CONTRACT TYPE OF PROJECT

COUNCIL
ACTION

CONTRACT
VALUE

BIDDING

REQUIREMENT

BONDS ADDITIONAL COMMENTS
Model Construction Contract
Documents
Model Document No. 29437851
“Public project” means any of the following:
(1) Construction, reconstruction, erection, alteration, renovation, improvement, demolition, and repair work involving any publicly owned, leased, or operated facility
(2) Painting or repainting of any publicly owned, leased, or operated facility
(3) In the case of a publicly owned utility system, “public project” shall include only the construction, erection, improvement, or repair of dams, reservoirs, powerplants, and electrical transmission lines of 230,000 volts and higher
(Pub. Con. Code § 22000)
Required for
contracts more than
$150,000
(OMC § 2-6.18(h))
$5,000 and over Formal bidding over
$200,000 (OMC § 2-

6.17)
Informal bidding
$60,000 - $200,000
(OMC § 2-6.18)
Payment Bond required for
contracts of $25,000 or more (Civ.

Code § 9550)
Performance Bond for the full value
of the contract is strongly
recommended but not required
• City issues Notice to Proceed to
commence contract time
• Use on Informal/Formal bid
projects
Model Short Form Construction
Contract
Model Document No. 33225207
Intended for low risk public projects or maintenance projects ($200,000 or less) such as:
• Maintenance or repair of streets or sewers
• Construction, maintenance, or repair of water facilities or water works
• All public projects, defined above, which do not require formal bidding ($200,000 or less)
Required for
contracts more than
$150,000 (OMC § 2-

6.18(h))
Up to $200,000 Informal bidding over
$200,000 (OMC § 2-

6.18)
Alternative Bid
Procedure for $60,000
or less (OMC § 2-6.19)
Payment Bond required for
contracts of $25,000 or more (Civ.

Code § 9550)
Performance Bond for the full value
of the contract is strongly
recommended but not required
• City issues Notice to Proceed to
commence contract time
• Can be used for “emergency”
contracts if project is low cost
and straightforward (Pub. Con.

Code § 22050)
Model Engineering Department
Construction Contract Documents -
Caltrans Standard Specification
Model Document No. 29440147
“Public project” means any of the following:
(1) Construction, reconstruction, erection, alteration, renovation, improvement, demolition, and repair work involving any publicly owned, leased, or operated facility
(2) Painting or repainting of any publicly owned, leased, or operated facility
(3) In the case of a publicly owned utility system, “public project” shall include only the construction, erection, improvement, or repair of dams, reservoirs, powerplants, and electrical transmission lines of 230,000 volts and higher
(Pub. Con. Code § 22000)
Specially drafted for projects built pursuant to 2010 Caltrans Standard Specifications
Required for
contracts more than
$150,000 (OMC § 2-

6.18(h))
$5,000 and over Formal bidding over
$200,000 (OMC § 2-

6.17)
Informal bidding
$60,000 - $200,000
(OMC § 2-6.18)
Payment Bond required for
contracts of $25,000 or more (Civ.

Code § 9550)
Performance Bond for the full value
of the contract is strongly
recommended but not required
• City issues Notice to Proceed to
commence contract time
• Use on Informal/Formal bid
projects built pursuant to 2010
Caltrans Standard Specifications
Model Engineering Department
Construction Contract Documents -
Greenbook
Model Document No. 33484528
“Public project” means any of the following:
(1) Construction, reconstruction, erection, alteration, renovation, improvement, demolition, and repair work involving any publicly owned, leased, or operated facility
(2) Painting or repainting of any publicly owned, leased, or operated facility
(3) In the case of a publicly owned utility system, “public project” shall include only the construction, erection, improvement, or repair of dams, reservoirs, powerplants, and electrical transmission lines of 230,000 volts and higher
(Pub. Con. Code § 22000)
Specially drafted for projects built pursuant to Greenbook Required for
contracts more than
$150,000 (OMC § 2-

6.18(h))
$5,000 and over Formal bidding over
$200,000 (OMC § 2-

6.17)
Informal bidding
$60,000 - $200,000
(OMC § 2-6.18)
Payment Bond required for
contracts of $25,000 or more (Civ.

TYPE OF CONTRACT TYPE OF PROJECT

COUNCIL
ACTION

CONTRACT
VALUE

BIDDING

REQUIREMENT

BONDS ADDITIONAL COMMENTS
Model OMUC Construction
Contract Documents
Model Document No. 33349674
“Public project” means any of the following:
(1) Construction, reconstruction, erection, alteration, renovation, improvement, demolition, and repair work involving any publicly owned, leased, or operated facility
(2) Painting or repainting of any publicly owned, leased, or operated facility
(3) In the case of a publicly owned utility system, “public project” shall include only the construction, erection, improvement, or repair of dams, reservoirs, powerplants, and electrical transmission lines of 230,000 volts and higher
(Pub. Con. Code § 22000)
Specially drafted for OMUC projects
Required for
contracts more than
$150,000 (OMC § 2-

6.18(h))
$5,000 and over Formal bidding over
$200,000 (OMC § 2-

6.17)
Informal bidding
$60,000 - $200,000
(OMC § 2-6.18)
Payment Bond required for
contracts of $25,000 or more (Civ.

Code § 9550)
Performance Bond for the full value
of the contract is strongly
recommended but not required
• City issues Notice to Proceed to
commence contract time
• Always use on formally bid
projects
Model Design Services
Agreement
Model Document No. 33241256
Engineering or architectural design services for a public facility or structure.

Note: Formerly “Model Architect Services Agreement”
Required for all
contracts over
$150,000
Unlimited Qualifications-based
selection (OMC § 2-

6.15)
Not usually required, but can be if
the project dictates
• Will usually involve negotiation
with architect on terms and scope
• Contract awarded based on
demonstrated competence and
qualifications to satisfactorily
perform the work (Gov. Code §§
4526-4529)
Model Professional Services
Agreement
Model Document No. 33225203
Professional consultant (independent contractor) work, such as:
• Financial
• Economic
• Accounting
• Legal
• Engineering (non-design)
• Administrative
Required for all
contracts over
$150,000
Unlimited Formal, informal, or
alternative procedure
(OMC §§ 2-6.14);
Qualifications based
selection (OMC § 2-

6.15)
Not usually required, but can be if
the project dictates
Model Maintenance Services
Agreement
Model Document No. 33225206
“Maintenance work” includes all of the following:
(1) Routine, recurring, and usual work for the preservation or protection of any publicly owned or publicly operated facility for its intended purposes
(2) Minor repainting
(3) Resurfacing of streets and highways at less than one inch (4) Landscape maintenance, including mowing, watering, trimming, pruning, planting, replacement of plants, and servicing of irrigation and sprinkler systems
(5) Work performed to keep, operate, and maintain publicly owned water, power, or waste disposal systems, including, but not limited to, dams, reservoirs, powerplants, and electrical transmission lines of 230,000 volts and higher
(Pub. Con. Code § 22000)
Required for
contracts more than
$150,000
Unlimited Formal, informal, or
alternative procedure
(OMC §§ 2-6.14)
Payment Bond required for
contracts of $25,000 or more (Civ.

Code § 9550)
Performance Bond for the full value
of the contract is strongly
recommended but not required
• Prevailing wages must be paid on
most maintenance projects.

Some exceptions include:
− Janitorial/Custodian
services
− Security/Watchman
services
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City of Ontario
Purchasing Policies and Procedures Manual
REVISED July 2024

TYPE OF CONTRACT TYPE OF PROJECT

COUNCIL
ACTION

CONTRACT
VALUE

BIDDING

REQUIREMENT

BONDS ADDITIONAL COMMENTS
Model General Services
Agreement
Model Document No. 40935197.1
“General Services” are those which are not considered Professional Services or Maintenance work. Some examples of situations for which a General Services Agreement would be appropriate are:
• Party rentals (i.e., tables and chairs)
• Basic computer services (i.e., off the shelf software) Alarm monitoring Services
Required for
contracts more than
$150,000
Unlimited Formal, informal, or
alternative procedure
(OMC §§ 2-6.14)
Not usually required, but can be if
the project dictates
• If the services contracted for are
not Professional Services or
Maintenance Services, then it
will most likely fall under a
General Services Agreement (if
there is any question, consult
with the City Attorney’s office)
Model IFB Maintenance Services
Agreement
Model Document No. 33437079
“Maintenance work” (as defined by Pub. Con. Code § 22000, above) when informal or formal bidding is desired
Required for
contracts more than
$150,000
Unlimited Formal, informal, or
alternative procedure
(OMC §§ 2-6.14)
Payment Bond required for
contracts of $25,000 or more (Civ.

Code § 9550)
Performance Bond for the full value
of the contract is strongly
recommended but not required
• Prevailing wages must be paid on
most maintenance projects.

Some exceptions include:
− Janitorial/Custodian
services
− Security/Watchman
services
• Use on Informal/Formal bid
projects
Model Letter Agreement
Model Document No. 33241407
For use on small projects (not included in definition of “public project” under Pub. Con. Code § 22000) such as professional and nonprofessional services involving little money, complexity, and risk to the City.

N/A For services under
$25,000 only
Formal, informal, or
alternative procedure
(OMC §§ 2-6.14);
Qualifications based
selection (OMC § 2-

6.15)
Not required Check with Risk Management for
insurance/bond requirements
Model Equipment Purchase
Agreement
Model Document No. 29443677
Equipment purchases only Required for
contracts more than
$150,000
Unlimited Any formal, informal,
or alternative procedure
(OMC §§ 2-6.16)
Not required Check with Risk Management for
insurance/bond requirements
Model Amendment to NonConstruction Agreements
Model Document No. 9423414
To be used to amend all non-construction agreements Required when total value of contract or
amendment is
$150,000 or more
Unlimited N/A N/A Check with Risk Management for
insurance/bond requirements that may
be triggered by new work added by
amendment
Model Goods & Services Agreement
Model Document No. 31872872
To be used when the City desires vendor to sell the materials and/or equipment to the City, and render services related to those goods Required for
contracts more than
$150,000
Unlimited Any formal, informal,
or alternative procedure
(OMC §§ 2-6.16)
Not required Check with Risk Management for
insurance/bond requirements
Model Construction Contract
Documents w/ CDBG
Model Document No. 31389538
“Public project” means any of the following:
(1) Construction, reconstruction, erection, alteration, renovation, improvement, demolition, and repair work involving any publicly owned, leased, or operated facility
(2) Painting or repainting of any publicly owned, leased, or operated facility
(3) In the case of a publicly owned utility system, “public project” shall include only the construction, erection, improvement, or repair of dams, reservoirs, powerplants, and electrical transmission lines of 230,000 volts and higher
(Pub. Con. Code § 22000)
Specially drafted for projects built pursuant to CDBG Specifications Required for
contracts more than
$150,000
(OMC § 2-6.18(h))
$5,000 and over Formal bidding over
$200,000 (OMC § 2-

6.17)
Informal bidding
$60,000 - $200,000
(OMC § 2-6.18)
Payment Bond required for
contracts of $25,000 or more (Civ.

1. Prevailing Wages must be paid on any “public works” or “maintenance” contract in excess of $1,000. Note: This is a broader definition than “public project” for public bidding purposes (See Labor Code §§ 1720, et seq. and 1771; 8 CCR §§ 16000 and 16001(f); and Department of Industrial Relations (“DIR”) Precedential Decision List effective January 8, 2001 at www.dir.ca.gov). Please note DIR has set wage rates for some “professional” services performed on public works and maintenance projects.

2. Performance Bonds are generally not required by state law; however, they are strongly recommended to secure performance by the contractor and full and adequate completion of the project.

3. Risk Management must approve all insurance/bond waivers.

4. Payment Bonds are required by law for projects involving: (1) construction, alterations, additions, or repairs; (2) seeding, sodding, or planting for landscaping purposes; (3) filling, leveling, or grading work; and (4) demolition or building removal work (See Civil Code Sections 8038 and 9550).

REVISED July 2024
107
Fiscal Year 2024-25
Mid-Year Budget Update
March 18, 2025

EXHIBIT A
108
Page
General Fund Revenues by Category 3
General Fund Expenditures by Category 4
General Fund Expenditures by Agency 5
General Fund Budget Summary 6
Citywide Expenditures by Category 7
Citywide Expenditures by Fund Type 8
General Fund Five-Year Financial Forecast 9
Authorized Full-Time Positions 10
Recommended Personnel Changes 11
Budget Adjustment Highlights 14
Detail of Recommended Budget Adjustments 17
Table of Contents
City of Ontario
Fiscal Year 2024-25
Mid-Year Budget Update

EXHIBIT A
109
FY 2024-25 First Quarter Mid-Year FY 2024-25 Actuals as of Adopted Budget Budget Update Budget Update Current Budget 12/31/2024 % Received Sales & Use Tax $ 194,375,000 $ - $ 2,775,000 $ 197,150,000 $ 63,191,289 32.1% Property Tax 106,025,000 - $ 250,000 106,275,000 41,148,241 38.7% Transient Occupancy Tax 17,000,000 - $ - 17,000,000 5,680,261 33.4% Business License Tax 10,150,000 - $ - 10,150,000 4,243,112 41.8% Parking Tax 4,000,000 - $ 450,000 4,450,000 1,582,023 35.6% Other Taxes 5,975,000 - $ - 5,975,000 300,018 5.0%
Licenses and Permits 7,057,000 - $ - 7,057,000 3,925,717 55.6% Intergovernmental 11,010,721 - $ - 11,010,721 5,719,295 51.9% Intergovernmental - ARPA 7,250,000 (712,132) $ - 6,537,868 2,364,748 36.2% Charges for Services 30,494,370 66,925 $ - 30,561,295 8,218,291 26.9% Charges for Services - OIAA 24,500,591 (634,012) $ - 23,866,579 10,208,917 42.8% Use of Money & Property 1,480,000 - $ - 1,480,000 237,596 16.1% Fines and Forfeitures 901,000 - $ - 901,000 606,538 67.3% Miscellaneous 5,647,747 5,516,612 $ 3,667,539 14,831,898 9,524,486 64.2% Total General Fund Revenues $ 425,866,429 $ 4,237,393 $ 7,142,539 $ 437,246,361 $ 156,950,532 35.9% Transfers-In 3,000,000 459,374 - 3,459,374 3,459,374 100.0% TOTAL RESOURCES $ 428,866,429 $ 4,696,767 $ 7,142,539 $ 440,705,735 $ 160,409,906 36.4% 1 Sales & Use Tax includes Bradley Burns $125.0M, Public Safety Tax Prop 72 $3.4M, and Measure Q $66.0M. 3 Property Tax increase due to Utility/Unitary revenue increases. 4 Parking Tax increase due to higher trending revenues. 5 Other Taxes includes Franchise Tax $3.5M and Property Transfer Tax $1.5M. 6 Intergovernmental includes Cost Allocation Plan Revenue. 7 Funding from American Rescue Plan Act (ARPA).
8 Charges for Services includes Special Districts Service Charges $12.2M. 9 City Services including Police & Fire to Ontario International Airport Authority (OIAA).

City of Ontario
General Fund Revenue by Category
Fiscal Year 2024-25
Mid-Year Budget Update
10 Miscellaneous includes $5.5M for FY 2023-24 Toyota Arena City Share of Revenues, $1.6M for FY 2024-25 increased SMG/Toyota Arena Revenues(offset by expenditures), and ($3.3M) reduction to deferred Ambulance program.
2 Sales Tax includes $4.7M increase to Bradley Burns for increase in point of sale revenue, ($3.0M) reduction to Measure Q due to lower trending revenues. 10 6
5 7
8 9
2 3
4 1
EXHIBIT A3
110
FY 2024-25 FY2024-25 Actuals as of
Adopted Budget Current Budget 12/31/2024 % Expended
Personnel Costs $ 253,011,211 $ - $ 689,391 $ (2,382,164) $ 251,318,438 $ 131,186,338 52.2% Operating Expenditures 42,749,833 283,874 2,006,052 $ 1,231,441 46,271,200 24,064,850 52.0% Contractual Services 23,139,834 917,174 1,060,250 $ 1,940,000 27,057,258 11,117,114 41.1% Internal Service Allocations 50,843,137 - (4,585) $ (251,649) 50,586,903 24,135,382 47.7% Reimbursement Agreements 10,519,656 - - $ 150,000 10,669,656 3,032,112 28.4% Contribution Expense 20,000 - - $ - 20,000 - 0.0%
Capital Expenditures - 487,570 - $ 116,659 604,229 604,016 100.0% Transfers-Out 47,146,250 - 992,332 $ - 48,138,582 24,423,896 50.7% Total General Fund Appropriations $ 427,429,921 $ 1,688,618 $ 4,743,440 $ 804,287 $ 434,666,266 $ 218,563,708 50.3% FTE General Fund 1,055.13 - - - 1,055.13
FTE Other Funds 461.87 - - - 461.87
Total FTE All Funds 1,517.00 - - - 1,517.00
City of Ontario
General Fund Expenditures by Category
Fiscal Year 2024-25
Mid-Year Budget Update
7 Capital Expenditures includes a $98K budget adjustment from Operating Expenditures for capital equipment purchases and $19K for Fire Operational Support Services. 1 Excludes obligations/PO's.

CIP/Grants/POs
Carryforward
First Quarter
Budget Update
Mid-Year
Budget Update
2 Personnel Costs includes ($2.4M) reduction for deferred Ambulance Program. 3 Operating Expenditures includes $1.6M for Toyota Arena Capital Reimbursement - Roof Repair and Suite remodel (revenue offset), ($300K) reduction for the deferred Ambulance Program. 4 Contractual Services includes $2.0M for the City Share of the Animal Resource Center (ARC) Agreement. 5 Internal Service Allocations includes a ($250K) reduction for the deferred Ambulance Program. 6 Reimbursement Agreements includes $150K for Whispering Lakes golf cart lease agreement. 3 4
5 5
2 1
6 7

EXHIBIT A
4 111
FY 2024-25 FY2024-25 Actuals as of
Adopted Budget Current Budget 12/31/2024 % Expended
Community Development $ 33,889,520 $ - $ 1,006,604 $ 2,000,000 $ 36,896,124 $ 14,945,897 40.5% Community Life & Culture 30,435,855 - 15,926 $ 229,881 30,681,662 14,634,724 47.7% Economic Development 17,376,851 464,387 1,954,180 $ 1,571,183 21,366,601 9,740,753 45.6% Financial Services 25,798,621 - 93,274 $ - 25,891,895 14,132,800 54.6% Human Resources/Risk Management 6,432,579 - 100,059 $ - 6,532,638 3,198,237 49.0% Management Services 10,137,836 - 49,509 $ - 10,187,345 6,218,025 61.0% Ontario Fire Department 102,590,549 487,570 323,007 $ (2,996,777) 100,404,349 51,784,562 51.6% Ontario Police Department 132,629,021 277,287 (168,349) $ - 132,737,959 69,076,429 52.0% Public Works 20,992,839 459,374 376,898 $ - 21,829,111 10,408,385 47.7% Transfers-Out 47,146,250 - 992,332 $ - 48,138,582 24,423,896 50.7% Total Appropriations & Transfers-Out $ 427,429,921 $ 1,688,618 $ 4,743,440 $ 804,287 $ 434,666,266 $ 218,563,708 50.3% FTE General Fund 1,055.13 - - - 1,055.13
FTE Other Funds 461.87 - - - 461.87
Total FTE All Funds 1,517.00 - - - 1,517.00
City of Ontario
General Fund Expenditures by Agency
Fiscal Year 2024-25
Mid-Year Budget Update
1 Excludes obligations/PO's.

CIP/Grants/POs
Carryforward
First Quarter
Budget Update
Mid-Year
Budget Update
5 Fire Department includes ($2.9M) reduction for the deferred Ambulance Program. 2 Community Development includes $2.0M for City Share for the Animal Resource Center (ARC) Agreement. 3 Community Life & Culture includes $150K for Reimbursement for Whispering Lakes golf cart lease agreement, $80K for Profit Sharing Expense from $5K Proceeds to Ontario-Montclair Schools Foundation. 4 Economic Development includes $1.6M for Toyota Arena Capital Reimbursement - Roof Repair and Suite Remodel (revenue offset). 1 4
3 2
5 EXHIBIT A
5 112
Fiscal Year 2024-25 Current Budget:

Estimated Beginning Fund Balance $ 75,722,444
Fiscal Year 2024-25 Adopted Budget:

Resources & Transfers-In $ 428,866,429
Appropriations & Transfers-Out (427,429,921)
First Quarter Budget Recommendations
Resources & Transfers-In 4,696,767
Appropriations & Transfers-Out (4,743,440)
Fiscal Year 2023-24 Carryforward Obligations (1,688,618) Mid-Year Budget Recommendations
Resources & Transfers-In 7,142,539 -
Appropriations & Transfers-Out $ (804,287) -
Budget Surplus/(Deficit) $ 6,039,469
Estimated Ending Fund Balance $ 81,761,913
Estimated General Fund Reserve 20%2 21.15%
2 For FY 2024-25, the Council approved reserve level is 20% with the goal of increasing the reserves up to 25% in future fiscal years. 1 Estimated Beginning Fund Balance for 07/01/2024 is unaudited.

City of Ontario
General Fund Budget Summary
Fiscal Year 2024-25
Mid-Year Budget Update
1 EXHIBIT A6
113
FY 2024-25 FY2024-25 Actuals as of
Adopted Budget Current Budget 12/31/2024 % Expended
Personnel Costs $ 329,697,821 $ 2,594,665 $ 2,184,358 $ (308,558) $ 334,168,286 $ 172,118,829 51.5% Operating Expenditures 235,838,586 26,151,174 9,976,889 (12,820,535) 259,146,114 104,412,073 40.3% Contractual Services 342,008,603 249,843,829 6,566,276 11,109,704 609,528,412 120,421,737 19.8% Internal Service Allocations 84,288,353 2,879 (4,585) (252,090) 84,034,557 40,680,420 48.4% Reimbursement Agreements 12,534,650 13,804,854 1,612,056 150,000 28,101,560 7,382,474 26.3% Debt Service 49,809,379 13,744,612 - 6,864,507 70,418,498 13,759,792 19.5% Contribution Expense 12,600,232 - 385,435 - 12,985,667 - 0.0% Capital Expenditures 23,854,502 31,839,525 606,787 10,080,291 66,381,105 15,642,776 23.6% Transfers-Out 70,798,042 - 1,451,706 - 72,249,748 47,249,792 65.4% Total Citywide Appropriations $ 1,161,430,168 $ 337,981,538 $ 22,778,922 $ 14,823,319 $ 1,537,013,947 $ 521,667,893 33.9% FTE General Fund 1,055.13 - - - 1,055.13
FTE Other Funds 461.87 - - - 461.87
Total FTE All Funds 1,517.00 - - - 1,517.00
1 Includes expenses and obligations/PO's.

City of Ontario
Citywide Expenditures by Category
Fiscal Year 2024-25
Mid-Year Budget Update
3 Operating Expenditures includes $1.6M for Toyota Arena Capital Reimbursement - Roof Repair and Suite Remodel, ($4.6M) reduction for Grant Closeout - Emporia Multifamily Housing Project GR_MS1802, and ($10.5M) reduction for Grant Closeout - Emporia Phase II GR2120. 2 Personnel Costs includes $650K for Office of Traffic Safety (STEP) Grant FY25 GR2509, $525K for US EPA Solid Waste Infrastructure for Recycling (SWIFR) Grant GR2518, $525K for Increase in Appropriations for Fire Mutual Aid, $350K for Americorps State Continuation Grant FY25 (CC Approved 9/03/24), and ($2.4M) reduction for the deferred Ambulance Program.

CIP/Grants/POs
Carryforward
First Quarter
Budget Update
Mid-Year
Budget Update
8 Capital Expenditures includes $9.3M for previously approved vehicle purchases both received and anticipated to receive by the end of the fiscal year, $1.5M for US EPA Solid Waste Infrastructure for Recycling (SWIFR) Grant GR2518, and ($900K) reduction for Budget Adjustment - Airport EDA Project Area MS2101. 7 Debt Service includes $5.9M for Ontario Sports Empire - Property Acquisition PA2302 Ontario WF Farms (10 acres) and Dairy River (15 acres), and $1.0M for 2024 Water Revenue Refunding Bonds. 5 Internal Service Allocations includes ($250K) reduction for the deferred Ambulance Program. 4 Contractual Services includes $5.0M for for Grove & Holt Intersection Widening Project (funding from Measure I Valley and OMC Regional DIF), $1.8M for Fallis House Mobility Hub Ins MS2211 construction (offset by insurance reimbursement), $1.7M for De Anza Park Improvements - Splash Pad project, $1.4M for D-Block Parking Structure PF2505 design/build, $1.3M for Additional appropriations for future utilities legal expenses (CC Approved 3/4/2025).
6 Reimbursement Agreements includes $150K for Reimbursement for Whispering Lakes golf cart lease agreement. 1 2
3 4
6 8
7 5
EXHIBIT A7
114
FY 2024-25 FY2024-25 Actuals as of
Adopted Budget Current Budget 12/31/2024 % Expended
General Fund $ 427,429,921 $ 1,688,618 $ 4,743,440 $ 804,287 $ 434,666,266 $ 218,563,708 50.3% Special Revenue Fund 107,422,499 82,047,684 5,205,766 $ (9,770,863) 184,905,086 32,205,136 17.4% Capital Projects Fund 245,897,110 213,085,453 426,726 $ 12,933,679 472,342,968 109,580,311 23.2% Enterprise Funds 251,609,889 24,784,873 9,960,222 $ 5,347,842 291,702,826 105,501,997 36.2% Internal Service Funds 127,503,074 6,003,351 2,452,763 $ 10,505,792 146,464,980 55,066,894 37.6% Total City Funds $ 1,159,862,493 $ 327,609,979 $ 22,788,917 $ 19,820,737 $ 1,530,082,126 $ 520,918,046 34.0% Ontario Housing Authority 1,567,675 10,371,559 (9,995) $ (4,997,418) 6,931,821 749,847 10.8% Total All Funds $ 1,161,430,168 $ 337,981,538 $ 22,778,922 $ 14,823,319 $ 1,537,013,947 $ 521,667,893 33.9% FTE General Fund 1,055.13 - - - 1,055.13
FTE Other Funds 461.87 - - - 461.87
Total FTE All Funds 1,517.00 - - - 1,517.00
1 Includes expenses and encumbrances/PO's.
7 Ontario Housing Authorty includes ($5.0M) reduction for Grant Closeout - Emporia Multifamily Housing Project GR_MS1802. 3 Special Revenue Funds includes $2.8M for Grove & Holt Intersection Widening Project (funding from Measure I Valley and OMC Regional DIF), ($1.7M) reduction for Grant Closeout - ATP Cycle 4 Pedestrians Improvement GR_ST1914, and ($10.5M) reduction for Grant Closeout - Emporia Phase II GR2120. 4 Capital Projects Funds includes $5.9M for Ontario Sports Empire - Property Acquisition PA2302 Ontario WF Farms (10 acres) and Dairy River (15 acres), $2.2M for Grove & Holt Intersection Widening Project, $1.8M for Fallis House Mobility Hub Ins MS2211 construction costs (offset by insurance reimbursement), $1.7M for De Anza Park Improvements - Splash Pad project, and $1.4M for D-Block Parking Structure PF2505 design/build.
5 Enterprise Funds includes $3.6M for US EPA Solid Waste Infrastructure for Recycling (SWIFR) Grant GR2518, $1.3M for Additional appropriations for future utilities legal expenses (CC Approved 3/4/2025), $1.0M for 2024 Water Revenue Refunding Bonds, and ($500K) reduction for Budget Adjustment - OMUC Customer Information System (CIS) Replacement MS2502. 6 Internal Service Funds includes $9.3M for Previously-approved vehicle purchases both received and anticipated to receive by the end of the fiscal year, $400K for Police Report Management System Replacement MS2501 full data conversion to new RMS system, $300K for Guardrail at Mountain Avenue and Philadelphia Street MS2506 construction (funded from General Liability). 2 General Fund includes $2.0M for City Share for the Animal Resource Center (ARC) Agreement, $1.6M for Toyota Arena Capital Reimbursement - Roof Repair and Suite remodel (revenue offset), $150K for Reimbursement for Whispering Lakes golf cart lease agreement, and ($3.0M) reduction for the deferred Ambulance Program.

Mid-Year
Budget Update
City of Ontario
Citywide Expenditures by Fund Type
Fiscal Year 2024-25
Mid-Year Budget Update
CIP/Grants/POs
Carryforward
First Quarter
Budget Update 1
2 3
4 5
6 7

EXHIBIT A
8 115
FY 2023-24
Year-End
FY 2024-25
Current Budget
FY 2025-26
Projected
FY 2026-27
Projected
FY 2027-28
Projected
FY 2028-29
Projected
FY 2029-30
Projected
Resources 1 $ 377,225,909 $ 377,705,735 $ 379,929,128 $ 398,805,820 $ 412,987,536 $ 430,823,227 $ 446,545,927 Measure Q Sales Tax 60,766,143 63,000,000 64,250,000 65,545,200 66,856,104 68,193,226 69,557,091 Appropriations 2 (318,306,845) (335,940,781) (363,384,754) (370,462,652) (377,403,356) (384,484,798) (396,735,519) Internal Service Funds (ISF) Allocations (49,324,509) (50,586,903) (51,984,114) (53,164,131) (54,420,923) (55,761,734) (49,037,032) CIP Transfers (48,111,578) (40,210,000) (34,360,000) (41,986,936) (43,188,381) (44,419,530) (45,681,206) Other Transfers (12,200,205) (7,928,582) (7,829,948) (9,176,304) (9,546,905) (9,943,449) (9,867,750) Budget Surplus/(Deficit) $ 10,048,915 $ 6,039,469 $ (13,379,688) $ (10,439,003) $ (4,715,925) $ 4,406,942 $ 14,781,511 Estimated Beginning Fund Balance $ 65,673,529 $ 75,722,444 $ 81,761,913 $ 68,382,225 $ 57,943,222 $ 53,227,297 $ 57,634,239 Estimated Ending Fund Balance $ 75,722,444 $ 81,761,913 $ 68,382,225 $ 57,943,222 $ 53,227,297 $ 57,634,239 $ 72,415,750 Projected Percent of GF Reserve level 20.6% 21.2% 16.5% 13.7% 12.3% 13.1% 16.2% 1 Resources include Revenues & Transfers-In.
2 Appropriations excludes Transfers-Out and ISF Allocations. 3 CIP Transfers includes $35.2M of Measure Q Revenues and $5.0M of Bradley Burns Revenues. 4 Other Transfers includes $4.6M for Retiree Medical Contribution, $1.5M for Police Helicopter Reserve, $500K for Fire Safety Equipment Reserve, and $300K for Parkway Maintenance.

City of Ontario
General Fund Five-Year Financial Forecast
Fiscal Year 2024-25
Mid-Year Budget Update
3 4

EXHIBIT A
9 116
Recommended Recommended
FY 2024-25
Agency Adopted Budget
Community Development 1 125.00 (41.00) - 84.00
Community Life & Culture 102.00 - - 102.00
Economic Development 9.00 - - 9.00
Financial Services 56.00 - - 56.00
Human Resources 31.00 - - 31.00
Information Technology 53.00 - - 53.00
Management Services 42.00 - - 42.00
Ontario Fire Department 2 265.00 - - 265.00
Ontario Municipal Utilities Company 139.00 - - 139.00
Ontario Police Department 3 429.00 - - 429.00
Public Works 1 266.00 41.00 - 307.00
Total Authorized Full-Time Positions 1,517.00 - 0.00 1,517.00 General Fund 1,055.13 - - 1,055.13
Other Funds 461.87 - - 461.87
Total FTE All Funds 1,517.00 - - 1,517.00
1 Transfer of Engineering Department from CDA to PW
2 OFD positions includes the following sworn positions 213.00 - - 213.00 3 OPD positions includes the following sworn positions 312.00 - - 312.00 First Quarter Budget
Update
Mid-Year
Budget Update
Total Authorized
Full-Time
Positions
City of Ontario
Authorized Full-Time Positions
Fiscal Year 2024-25
Mid-Year Budget Update
EXHIBIT A10
117
Agency Department General Fund Other Fund Total Position Action Community Development
Building (2.00) - (2.00) Combination Building Inspector Delete $ 7,455 - $ 9,060 Building 2.00 - 2.00 Senior Combination Building Inspector Add $ 8,321 - $ 10,115 Planning (1.00) - (1.00) Sustainability Program Manager Delete $ 13,009 - $ 15,807 Planning 1.00 - 1.00 Principal Planner Add $ 13,009 - $ 15,807 - - -
General Fund General Fund FTE
$ 4,907 -
Community Life & Culture
Library (1.00) - (1.00) Office Specialist Delete $ 4,538 - $ 5,512 Library 1.00 - 1.00 Senior Librarian Add $ 6,902 - $ 8,476 Housing (1.00) - (1.00) Senior Management Anlyst Delete $ 8,982 - $ 10,913 Housing 1.00 - 1.00 Management Analyst Add $ 7,245 - $ 8,807 Recreation (1.00) - (1.00) Recreation / Community Services Director Salary Adjustment $ 11,939 - $ 15,888 Recreation 1.00 - 1.00 Recreation / Community Services Director Salary Adjustment $ 12,537 - $ 16,680 - - -
General Fund General Fund FTE
$ 138 -
Economic Development
Economic Development (1.00) - (1.00) Senior Management Analyst Delete $ 8,982 - $ 10,913 Economic Development 1.00 - 1.00 Administrative Officer Add $ 10,906 - $ 13,260 Economic Development (1.00) - (1.00) Economic Development Coordinator Delete $ 8,982 - $ 10,913 Economic Development 1.00 - 1.00 Senior Economic Development Coordinator Add $ 9,883 - $ 12,007 Economic Development (1.00) - (1.00) Economic Development Coordinator Delete $ 8,982 - $ 10,913 Economic Development 1.00 - 1.00 Project Manager Add $ 9,883 - $ 12,007 - - -
General Fund General Fund FTE
$ 9,826 -
Financial Services
Purchasing (1.00) - (1.00) Purchasing Manager Delete $ 10,052 - $ 12,217 Purchasing 0.70 - 0.70 Administrative Officer Add $ 10,906 - $ 13,260 Financial Systems Support 0.30 - 0.30 Administrative Officer Add $ 10,906 - $ 13,260 Financial Systems Support (1.00) - (1.00) Administrative Specialist Delete $ 5,938 - $ 7,218 Financial Systems Support 1.00 - 1.00 Management Analyst Add $ 7,245 - $ 8,807 Budget (1.00) - (1.00) Departmental Administrator Delete $ 11,939 - $ 15,888 Budget 1.00 - 1.00 Financial Analyst Add $ 9,072 - $ 11,021 Business License (3.00) - (3.00) Customer Service Representative Retitle $ 4,538 - $ 5,512 Business License 3.00 - 3.00 Customer Service Representative II Retitle $ 4,538 - $ 5,512 Purchasing (1.00) - (1.00) Buyer Delete $ 7,245 - $ 8,807 Purchasing 1.00 - 1.00 Purchasing Supervisor Add $ 10,052 - $ 12,217 - - -
General Fund General Fund FTE
$ 5,519 -
Salary Range
City of Ontario
Recommended Personnel Changes
Fiscal Year 2024-25
Mid-Year Budget Update
Proposed Change

EXHIBIT A
11 118
Agency Department General Fund Other Fund Total Position Action Salary Range City of Ontario
Recommended Personnel Changes
Fiscal Year 2024-25
Mid-Year Budget Update
Proposed Change
Human Resources/Risk Management
Human Resources (1.00) - (1.00) Senior Human Resources Analyst Delete $ 8,982 - $ 10,913 Human Resources 1.00 - 1.00 Human Resources Analyst Add $ 7,989 - $ 9,705 Human Resources (1.00) - (1.00) Principal Human Resources Agency Partner Delete $ 10,906 - $ 13,260 Human Resources 1.00 - 1.00 Departmental Administrator Add $ 11,939 - $ 15,888 Human Resources (1.00) - (1.00) Principal Human Resources Agency Partner Delete $ 10,906 - $ 13,260 Human Resources 1.00 - 1.00 Departmental Administrator Add $ 11,939 - $ 15,888 Human Resources (1.00) - (1.00) Human Resources Specialist Delete $ 5,938 - $ 7,218 Human Resources 1.00 - 1.00 Human Resources Technician Add $ 6,367 - $ 7,739 Human Resources - (1.00) (1.00) Human Resources Analyst Delete $ 7,989 - $ 9,705 Human Resources - 1.00 1.00 Safety Officer Add $ 8,982 - $ 10,913 Human Resources - (1.00) (1.00) Human Resources Analyst Delete $ 7,989 - $ 9,705 Human Resources - 1.00 1.00 Risk Management Adjuster Add $ 7,609 - $ 9,243 Human Resources (0.50) (0.50) (1.00) Office Specialist Delete $ 4,538 - $ 5,512 Human Resources 0.50 0.50 1.00 Human Resources Technician Add $ 6,367 - $ 7,739 - - -
General Fund General Fund FTE
$ 1,901 -
Management Services
Innovation Performance & Audit (1.00) - (1.00) Internal Auditor Delete $ 8,046 - $ 9,778 Innovation Performance & Audit 1.00 - 1.00 Senior Internal Auditor Add $ 9,072 - $ 11,021 Innovation Performance & Audit (1.00) - (1.00) Senior Performance and Optimization Analyst Delete $ 9,923 - $ 12,062 Communications & Community Relations 1.00 - 1.00 Legislative Analyst Add $ 7,245 - $ 8,807 - - -
General Fund General Fund FTE
$ (9,985) -
Ontario Municipal Utilities
Utilities - (17.00) (17.00) Customer Service Representative Retitle $ 4,538 - $ 5,512 Utilities - 17.00 17.00 Customer Service Representative II Retitle $ 4,538 - $ 5,512 - - -
General Fund General Fund FTE
$ - -
Ontario Police Department
Office of Police Chief (1.00) - (1.00) Police Sergeant Delete $ 12,035 - $ 14,624 Office of Police Chief 1.00 - 1.00 Police Lietenant Add $ 13,634 - $ 16,562 Communications (1.00) - (1.00) Community Relations Supervisor Retitle / Salary Adjustment $ 11,757 - $ 14,291 Communications 1.00 - 1.00 Community Information Supervisor Retitle / Salary Adjustment $ 8,109 - $ 9,859 Airport Operations (1.00) - (1.00) Senior Police Dispatcher Delete $ 5,968 - $ 7,325 Airport Operations 1.00 - 1.00 Senior Real Time Information Center Operator Add $ 5,968 - $ 7,325 Dective Division (1.00) - (1.00) Community Service Officer Delete $ 4,938 $ 6,001 Dective Division 1.00 - 1.00 Senior Real Time Information Center Operator Add $ 5,968 $ 7,325 - - -
General Fund General Fund FTE
$ 14,475 -

EXHIBIT A
12 119
Agency Department General Fund Other Fund Total Position Action Salary Range City of Ontario
Recommended Personnel Changes
Fiscal Year 2024-25
Mid-Year Budget Update
Proposed Change
Public Works
Integrated Waste - (1.00) (1.00) Integrated Waste Collector Delete $ 4,424 - $ 5,377 Integrated Waste - 1.00 1.00 Senior Integrated Waste Collector Add $ 4,887 - $ 5,937 Integrated Waste - (1.00) (1.00) Integrated Waste Collector Delete $ 4,424 - $ 5,377 Integrated Waste - 1.00 1.00 Senior Integrated Waste Collector Add $ 4,887 - $ 5,937 Integrated Waste - (1.00) (1.00) Integrated Waste Collector Delete $ 4,424 - $ 5,377 Integrated Waste - 1.00 1.00 Senior Integrated Waste Collector Add $ 4,887 - $ 5,937 Integrated Waste - (1.00) (1.00) Integrated Waste Maintenance Worker Delete $ 4,252 - $ 5,162 Integrated Waste - 1.00 1.00 Integrated Waste Collector Add $ 4,424 - $ 5,377 Parks & Street Maintenance (1.00) - (1.00) Park Maintenance Technician Delete $ 5,181 - $ 6,299 Parks & Street Maintenance 1.00 - 1.00 Senior Park Maintenance Worker Add $ 4,697 - $ 5,704 Parks & Street Maintenance (1.00) - (1.00) Parks & Street Maintenance Superintendent Delete $ 9,305 - $ 11,305 Parks & Street Maintenance 1.00 - 1.00 Parks & Street Maintenance Manager Add $ 11,022 - $ 13,400 Design and Construction - (1.00) (1.00) Principal Construction Project Manager Delete $ 12,457 - $ 15,135 Design and Construction - 1.00 1.00 Design & Construction Director Add $ 12,535 - $ 16,679 Parks & Street Maintenance (1.00) - (1.00) Urban Forestry Superintendent Delete $ 9,305 - $ 11,305 Parks & Street Maintenance 1.00 - 1.00 Parks & Street Maintenance Superintendent Add $ 9,305 - $ 11,305 Engineering (1.00) - (1.00) Public Works Assistant Director Retitle $ 16,799 - $ 22,353 Engineering 1.00 - 1.00 Assistant Public Works Director Retitle $ 16,799 - $ 22,353 - - -
General Fund General Fund FTE
$ 3,227 -
Total Additions/(Deletions) - - -
Net Change By Fund Mid-Year Personnel Cost Impact Net FTE Change 1000 General Fund $ 30,008 -
5010 Water Operating $ (2,587) -
5110 Sewer Operating $ (2,587) -
5210 Integrated Waste $ 14,546 -
6010 Equipment Services $ (2,587) -
6030 Facility Maintenance $ 16,464 -
6110 Workers Compensation $ 934 -
6111 General Liability $ 483 -
Grand Total $ 54,674 -
EXHIBIT A13
120
Agency Description
Appropriation
Adjustment General Fund Other Funds
Community Development
City Share for the Animal Resource Center (ARC) Agreement 2,000,000 2,000,000 - 2,000,000 2,000,000 -
Community Life & Culture
Reimbursement for Whispering Lakes golf cart lease agreement 150,000 150,000 - Profit Sharing Expense from 5K Proceeds to Ontario-Montclair Schools Foundation 79,881 79,881 - Americorps State Continuation Grant FY25 (CC Approved 9/03/24) 368,000 - 368,000 Transformative Climate Communities ATP - Missions Blvd Bike & Pedestrian Imprlvement GR_MS_TCAT12 25,938 - 25,938 Kaiser Permanente - Ontario Access Center Grant GR2513 10,000 - 10,000 COVES Art Bridges Project GR2515 5,000 - 5,000
Grant Closeout - CDBG Shared Vision Bringing Library to You GR1924 (2,478) - (2,478) Grant Closeout - CDBG Mercy House GR0502 (3,454) - (3,454) Grant Closeout - CDBG Assisi House Renovations GR1701 (3,523) - (3,523) Grant Closeout - Community Development Block Grant Slurry Seal Projects GR_ST1714 (4,152) - (4,152) Budget Adjustment - Lightspeed at Ontario City Library GR1809 (6,949) - (6,949) Grant Closeout - CDBG HOGI Vesta Property GR1418 (21,934) - (21,934) Grant Closeout - Hotel Voucher Program GR2303 (23,882) - (23,882) Grant Closeout - CDBG Assisi House Transitional Program GR2451 (26,250) - (26,250) Grant Closeout - Community Development Block Grant LED Streetlight Conversion Project GR_TR1701 (48,106) - (48,106) Grant Closeout - CDBG Emergency Motel Voucher Program GR2453 (54,934) - (54,934) Grant Closeout - CDBG Downtown Storefront Facade Imp GR1905 (61,210) - (61,210) Grant Closeout - Community Development Block Grant 411 N Parkside GR_MS1709 (98,400) - (98,400) Grant Closeout - CDBG Community Improvement Team - CIT GR2490 (100,000) - (100,000) Grant Closeout - CDBG Mission-Mountain Storefront Facade GR2114 (125,000) - (125,000) Grant Closeout - CDBG Weatherization Home Improvement GR1902 (355,261) - (355,261) Grant Closeout - Emporia Multifamily Housing Project GR_MS1802 (4,997,418) - (4,997,418) Grant Closeout - Emporia Phase II GR2120 (10,525,657) - (10,525,657) (15,819,789) 229,881 (16,049,670)
Economic Development
Toyota Arena Capital Reimbursement - Suite Remodel (revenue offset) 1,021,183 1,021,183 - Toyota Arena Capital Reimbursement - Roof Repair (revenue offset) 550,000 550,000 - Ontario Sports Empire - Property Acquisition PA2302 Promissory Note (WF Farms and Dairy River) 5,887,729 - 5,887,729 Budget Adjustment - Airport EDA Project Area MS2101 (993,391) - (993,391) 6,465,521 1,571,183 4,894,338
City of Ontario
Budget Adjustment Highlights
Fiscal Year 2024-25
Mid-Year Budget Update

EXHIBIT A
14 121
Agency Description
Appropriation
Adjustment General Fund Other Funds
City of Ontario
Budget Adjustment Highlights
Fiscal Year 2024-25
Mid-Year Budget Update
Information Technology
Transfer from Modernize Desktop and Device Management Deployment MS2504 and Multicarrier Distributed Antennae System PF2404 to Police Report Management System Replacment MS2501 575,722 - 575,722 Police Report Management System Replacment MS2501 full data conversion to new RMS system 400,000 - 400,000 Additional digital licenses citywide 65,804 - 65,804
Increased maintenance & repairs due to increased utilization the Accela Land Management system 50,376 - 50,376 Transfer from Multicarrier Distributed Antennae System PF2404 to Police Report Management System Replacment MS2501 (275,722) - (275,722) Transfer from Modernize Desktop and Device Management Deployment MS2504 to Police Report Management System Replacment MS2501 (300,000) - (300,000)
Budget Adjustment - OMUC Customer Information System (CIS) Replacement MS2502 (500,000) - (500,000) 16,180 - 16,180
Management Services
Digital Equity Leadership Grant GR2521 20,000 - 20,000
20,000 - 20,000
OMUC
Additional appropriations for future Utilities legal expenses (CC Approved 3/4/2025) 1,300,000 - 1,300,000 2024 Water Revenue Refunding Bonds Debt Service 976,778 - 976,778 2,276,778 - 2,276,778
Ontario Fire Department
Budget Adjustment - deferred Ambulance Program (2,996,777) (2,996,777) - Increase in Appropriations for Fire Mutual Aid Fund (offset by revenue) 753,000 - 753,000 Emergency Management Performance Grant GR2512 25,843 - 25,843 Grant Closeout - Riverside UASI FY20-FD Grant GR2211 (3,115) - (3,115) (2,221,049) (2,996,777) 775,728
Ontario Police Department
Office of Traffic Safety (STEP) Grant FY25 GR2509 705,000 - 705,000 Real Time Information Center PF2422 Axon amendment for drone as a first responder (CC Approved 2/28/25) 306,570 - 306,570 COPS ELEAS Award FY25 GR2511 279,859 - 279,859
Justice Assistance Grant (JAG) FY24 GR2519 43,060 - 43,060 Firehouse Subs Public Safety Foundation Grant GR2516 23,622 - 23,622 Grant Closeout - Ride to Live GR2313 (11,351) - (11,351) 1,346,760 - 1,346,760

EXHIBIT A
15 122
Agency Description
Appropriation
Adjustment General Fund Other Funds
City of Ontario
Budget Adjustment Highlights
Fiscal Year 2024-25
Mid-Year Budget Update
Public Works
Previously-approved vehicle purchases both received and anticipated to receive by the end of the fiscal year 9,335,138 - 9,335,138 Additional Funds for Grove & Holt Intersection Widening Project (Funded from Measure I Valley and OMC Regional DIF) 5,000,000 - 5,000,000 US EPA Solid Waste Infrastructure for Recycling (SWIFR) Grant GR2518 3,571,064 - 3,571,064 Fallis House Mobility Hub Ins MS2211 construction costs (offset by insurance reimbursement) 1,829,150 - 1,829,150 De Anza Park Improvements - Splash Pad project 1,700,000 - 1,700,000 D-Block Parking Structure PF2505 funding to design/build the structure. (CC Approved 12/17/24) 1,361,750 - 1,361,750 Guardrail at Mountain Avenue and Philadelphia Street MS2506 construction costs (funded from General Liability) 300,000 - 300,000 Energy Efficiency and Conservation Block Grant(EECBG) GR2520 218,330 - 218,330 Additional funds for the FY 2024-25 Alley Rehabilitation Program 139,700 - 139,700 Parks Pole Replacement Project PA2201 outfield netting replacement (CC date 3/4/2025) 77,944 - 77,944 Consulting for solar PV sytems at Police Department and Ontario Convention Center 58,200 - 58,200 San Antonio Storm Drain SM2101 additional DIF funding 40,490 - 40,490 Budget Adjustment - ATP-Mission Blvd Bike and Ped Improvemtns MS_TCAT12 (25,938) - (25,938) Grant Closeout - ATP Cycle 4 Pedestrians Improvement GR_ST1914 (110,353) - (110,353) Grant Closeout - Highway Bridge Program GR_ST1610 (412,010) - (412,010) Budget Adjustment - De Anza Park Lighting Improvements GR_PF2412 (665,000) - (665,000) Grant Closeout - ATP Cycle 4 Pedestrians Improvement GR_ST1914 (1,679,547) - (1,679,547) 20,738,918 - 20,738,918
Total Expenditures 14,823,319 804,287 14,019,032
Transfers-Out - - -
Grand Total $ 14,823,319 $ 804,287 $ 14,019,032

EXHIBIT A
16 123
Appropriation Revenue Operating Operating Fund Balance
Description Adjustments Adjustments Transfers-In Transfers-Out Impact

GENERAL FUND
Fund 1000 - General Fund
FY 2023-24 Toyota Arena City Share of Revenues - 5,474,103 - - 5,474,103 Reimbursement for Donovan Bros golf cart lease agreement 150,000 - - - (150,000) Toyota Arena Capital Reimbursement - Roof Repair and Offsetting Revenue 550,000 550,000 - - - Toyota Arena Capital Reimbursement - Suite Remodel and Offsetting Revenues 1,021,183 1,021,183 - - - Profit Sharing Expense from 5K Proceeds to Ontario-Montclair Schools Foundation 79,881 - - - (79,881) Deferred Ambulance Program (2,996,777) (3,377,747) - - (380,970) Fire Operational Support Services moving funds from Operating to Capital Expenditures to cover expenses already incurred (18,750) 18,750 Fire Operational Support Services moving funds from Operating to Capital Expenditures to cover expenses already incurred 18,750 (18,750) City Share for the Animal Resource Center (ARC) Agreement 2,000,000 - - - (2,000,000) Sales Tax - Bradley Burns increase in point of sale revenue - 6,200,000 - - 6,200,000 Sales Tax Prop 172 reduction based on actuals - (425,000) - - (425,000) Sales Tax - Measure Q reduction based on lower trending revenues - (3,000,000) - - (3,000,000) Property Tax increase due to Utility/Unitary revenue increasess - 250,000 - - 250,000 Parking Tax increase due to higher trending revenues - 450,000 - - 450,000 GENERAL FUND TOTAL 804,287 7,142,539 - - 6,338,252

SPECIAL REVENUE FUNDS
Fund 2010 - Community Development Block Grant
Grant Closeout - Community Development Block Grant 411 N Parkside GR_MS1709 (98,400) (98,400) - - - Grant Closeout - Community Development Block Grant Slurry Seal Projects GR_ST1714 (4,152) (4,152) - - - Grant Closeout - Community Development Block Grant LED Streetlight Conversion Project GR_TR1701 (48,106) (48,106) - - - Grant Closeout - CDBG Mercy House GR0502 (3,454) (3,454) - - - Grant Closeout - CDBG HOGI Vesta Property GR1418 (21,934) (21,934) - - - Grant Closeout - CDBG Assisi House Renovations GR1701 (3,523) (3,523) - - - Grant Closeout - CDBG Weatherization Home Improvement GR1902 (355,261) (355,261) - - - Grant Closeout - CDBG Downtown Storefront Facade Imp GR1905 (61,210) (61,210) - - - Grant Closeout - CDBG Mission-Mountain Storefront Facade GR2114 (125,000) (125,000) - - - Grant Closeout - Hotel Voucher Program GR2303 (23,882) (23,882) - - - Grant Closeout - CDBG Assisi House Transitional Program GR2451 (26,250) (26,250) - - - Grant Closeout - CDBG Emergency Motel Voucher Program GR2453 (54,934) (54,934) - - - Grant Closeout - CDBG Community Improvement Team - CIT GR2490 (100,000) (100,000) - - - (926,106) (926,106) - - -
Fund 2021 - Housing Grants
Grant Closeout - Emporia Phase II GR2120 (10,525,657) (10,525,657) - - - (10,525,657) (10,525,657) - - -
Fund 2220 - Measure I Valley Major Project
Additional Appropriations for Grove & Holt Intersection Widening Project 2,780,000 2,780,000 - - (2,780,000) 2,780,000 2,780,000 - - (2,780,000)
City of Ontario
Detail of Recommended Budget Adjustments by Fund
Fiscal Year 2024-25
Mid-Year Budget Update
EXHIBIT A17
124
Appropriation Revenue Operating Operating Fund Balance
Description Adjustments Adjustments Transfers-In Transfers-Out Impact City of Ontario
Detail of Recommended Budget Adjustments by Fund
Fiscal Year 2024-25
Mid-Year Budget Update
Fund 2400 - General Fund Grants
Budget Adjustment - De Anza Park Lighting Improvements GR_PF2412 (665,000) (665,000) - - - Transformative Climate Communities ATP - Missions Blvd Bike & Pedestrian Imprlvement GR_MS_TCAT12 25,938 25,938 - - - Office of Traffic Safety (STEP) Grant FY25 GR2509 705,000 705,000 - - - COPS ELEAS Award FY25 GR2511 279,859 279,859 - - -
Kaiser Permanente - Ontario Access Center Grant GR2513 10,000 10,000 - - - Emergency Management Performance Grant GR2512 25,843 25,843 - - - Firehouse Subs Public Safety Foundation Grant GR2516 23,622 23,622 - - - Americorps State Continuation Grant FY25 (CC Approved 9/03/24) 368,000 368,000 - - - Grant Closeout - ATP Cycle 4 Pedestrians Improvement GR_ST1914 (1,679,547) (1,679,547) - - - Budget Adjustment - Lightspeed at Ontario City Library GR1809 (6,949) (6,949) - - - Grant Closeout - Riverside UASI FY20-FD Grant GR2211 (3,115) (3,115) - - - Grant Closeout - CDBG Shared Vision Bringing Library to You GR1924 (2,478) (2,478) - - - COVES Art Bridges Project GR2515 5,000 5,000 - - -
Grant Closeout - Ride to Live GR2313 (11,351) (11,351) - - - Justice Assistance Grant (JAG) FY24 GR2519 43,060 43,060 - - - (882,118) (882,118) - - -
Fund 2513 - Fire Mutual Aid
Increase in Appropriations for Fire Mutual Aid Fund (offset by revenue) 753,000 - - - (753,000) Increasing Strike Team Reimbursement - Federal revenue based on YTD reimbursements - 1,500,000 - - 1,500,000 Increasing Strike Team Reimbursement - State revenue based on YTD reimbursements - 500,000 - - 500,000 753,000 2,000,000 - - 1,247,000
Fund 2521 - Broadband / Fiber
Digital Equity Leadership Grant GR2521 20,000 20,000 - - - 20,000 20,000 - - -
Fund 2522 - Opioid Settlement
Updating Opioid Settlement Revenues to match expenditures - 93,886 - - 93,886 - 93,886 - - 93,886
Fund 2530 - Gas Tax
Budget Adjustment - ATP-Mission Blvd Bike and Ped Improvemtns MS_TCAT12 (25,938) - - - 25,938 (25,938) - - - 25,938
Fund 2531 - Road Maint & Rehab Acct (SB1)
Additional funds for the FY 2024-25 Alley Rehabilitation Program 139,700 - - - (139,700) Grant Closeout - ATP Cycle 4 Pedestrians Improvement GR_ST1914 (110,353) (110,353) - - - 29,347 (110,353) - - (139,700)
Fund 2570 - Economic Development Activities Fund
Budget Adjustment - Airport EDA Project Area MS2101 (90,000) - - - 90,000 Budget Adjustment - Airport EDA Project Area MS2101 (903,391) - - - 903,391 (993,391) - - - 993,391
SPECIAL REVENUE FUNDS TOTAL (9,770,863) (7,550,348) - - (559,485)

EXHIBIT A
18 125
Appropriation Revenue Operating Operating Fund Balance
Description Adjustments Adjustments Transfers-In Transfers-Out Impact City of Ontario
Detail of Recommended Budget Adjustments by Fund
Fiscal Year 2024-25
Mid-Year Budget Update

CAPITAL PROJECT FUNDS
Fund 4010 - Capital Projects
Transfer funds from Celebration Park North Improvements PA2405 to James Bryant Park Improvements PA2503 (27,122) - - - 27,122 Transfer funds from Celebration Park North Improvements PA2405 to James Bryant Park Improvements PA2503 27,122 - - - (27,122) De Anza Park Improvements - Splash Pad project 1,700,000 - - - (1,700,000) D-Block Parking Structure PF2505 funding to design/build the structure. (CC Approved 12/17/24) 1,361,750 - - - (1,361,750) Real Time Information Center PF2422 Axon amendment for drone as a first responder (CC date 2/28/25) 306,570 - - - (306,570) Ontario Sports Empire - Property Acquisition PA2302 Ontario WF Farms(10 acres) and Dairy River (15 acres) 929,735 - - - (929,735) Ontario Sports Empire - Property Acquisition PA2302 Ontario WF Farms(10 acres) and Dairy River (15 acres) 4,957,994 - - - (4,957,994) National Ballistic Infomration Network PF2419 transfer from Capital Projects to Capital Projects - Measure Q (369,133) - - - 369,133 National Ballistic Infomration Network PF2419 transfer from Capital Projects to Capital Projects - Measure Q 369,133 - - - (369,133) Fallis House Mobility Hub Ins MS2211 construction costs (offset by insurance reimbursement) 1,829,150 1,175,340 - - (653,810) 11,085,199 1,175,340 - - (9,909,859)
Fund 4020 - Ground Access
Grant Closeout - Highway Bridge Program GR_ST1610 (412,010) (412,010) - - - (412,010) (412,010) - - -
Fund 4312 - OMC - Local Adjacent Streets
Additional Appropriations for Grove & Holt Intersection Widening Project 2,220,000 - - - (2,220,000) 2,220,000 - - - (2,220,000)
Fund 4313 - OMC - Local Adjacent Storm Drain
San Antonio Storm Drain SM2101 additional DIF funding 40,490 - - - (40,490) 40,490 - - - (40,490)
CAPITAL PROJECT FUNDS TOTAL 12,933,679 763,330 - - (12,170,349) EXHIBIT A19
126
Appropriation Revenue Operating Operating Fund Balance
Description Adjustments Adjustments Transfers-In Transfers-Out Impact City of Ontario
Detail of Recommended Budget Adjustments by Fund
Fiscal Year 2024-25
Mid-Year Budget Update

ENTERPRISE FUNDS
Fund 5010 - Water Operating
Additional appropriations for future Utilities legal expenses (CC Approved 3/4/2025) 800,000 - - - (800,000) 800,000 - - - (800,000)
Fund 5011 - Water Capital
2024 Water Revenue Refunding Bonds 976,778 43,955,000 - - 42,978,222 Budget Adjustment - OMUC Customer Information System (CIS) Replacement MS2502 (225,000) - - - 225,000 751,778 43,955,000 - - 43,203,222
Fund 5110 - Sewer Operating
Additional appropriations for future Utilities legal expenses (CCApproved 3/4/2025) 500,000 - - - (500,000) 500,000 - - - (500,000)
Fund 5111 - Sewer Capital
Budget Adjustment - OMUC Customer Information System (CIS) Replacement MS2502 (115,000) - - - 115,000 (115,000) - - - 115,000
Fund 5210 - Integrated Waste
Budget Adjustment - OMUC Customer Information System (CIS) Replacement MS2502 (160,000) - - - 160,000 US EPA Solid Waste Infrastructure for Recycling (SWIFR) Grant GR2518 3,571,064 3,571,064 - - - ENTERPRISE FUNDS TOTAL 5,347,842 47,526,064 - - 42,178,222

EXHIBIT A
20 127
Appropriation Revenue Operating Operating Fund Balance
Description Adjustments Adjustments Transfers-In Transfers-Out Impact City of Ontario
Detail of Recommended Budget Adjustments by Fund
Fiscal Year 2024-25
Mid-Year Budget Update

INTERNAL SERVICE FUNDS
Fund 6010 - Equipment Services
Previously-approved vehicle purchases both received and anticipated to receive by the end of the fiscal year 9,335,138 - - - (9,335,138) 9,335,138 - - - (9,335,138)
Fund 6020 - Information Technology
Increased maintenance & repairs due to increased utilization the Accela Land Management system 50,376 - - - (50,376) Additional digital licenses citywide 65,804 - - - (65,804) Transfer from Modernize Desktop and Device Management Deployment MS2504 to Police Report Management System Replacment MS2501
(300,000) - - - 300,000
Transfer from Multicarrier Distributed Antennae System PF2404 to Police Report Management System Replacment MS2501 (162,917) - - - 162,917 Transfer from Multicarrier Distributed Antennae System PF2404 to Police Report Management System Replacment MS2501 (112,805) - - - 112,805 Transfer from Modernize Desktop and Device Management Deployment MS2504 and Multicarrier Distributed Antennae System PF2404 to Police Report Management System Replacement MS2501
575,722 - - - (575,722)
Police Report Management System Replacement MS2501 full data conversion to new RMS system 400,000 - - - (400,000) 516,180 - - - (516,180)
Fund 6030 - Facilities & Parks Maintenance
Consulting for solar PV sytems at Police Department and Ontario Convention Center 58,200 - - - (58,200) Parks Pole Replacement Project PA2201 outfield netting replacement (CC date 3/4/2025) 77,944 - - - (77,944) Energy Efficiency and Conservation Block Grant (EECBG) GR2520 218,330 218,330 - - - 354,474 218,330 - - (136,144)
Fund 6111 - General Liability
Guardrail at Mountain Avenue and Philadelphia Street MS2506 construction costs 300,000 - - - (300,000) 300,000 - - - (300,000)
INTERNAL SERVICE FUNDS TOTAL 10,505,792 218,330 - - (10,287,462) TOTAL CITY FUNDS BUDGET ADJUSTMENTS 19,820,737 48,099,915 - - 25,499,178 Fund 2310 - Ontario Housing Authority
Grant Closeout - Emporia Multifamily Housing Project GR_MS1802 (4,997,418) (4,997,418) - - - (4,997,418) (4,997,418) - - -
AGENCY FUNDS TOTAL (4,997,418) (4,997,418) - - -
-
TOTAL ALL FUNDS BUDGET ADJUSTMENTS 14,823,319 43,102,497 - - 25,499,178 EXHIBIT A21
128
Department: Public Works
Prepared By: Adrian Escamilla
Staff Member Presenting: Tito Haes, Executive
Director Public Works
Reviewed By: Andrea Ampig, Bonnie Tam
Approved By:

COMMUNITY CENTER ROOF REPLACEMENT PROJECT

CITY OF ONTARIO
Agenda Report
March 18, 2025
SECTION:

CONSENT CALENDAR
RECOMMENDATION: That the City Council take the following actions:

A. Authorize the City Manager, or his designee, to execute Construction Contract No. D&C22- 014 with C.I. Services, Inc., of Mission Viejo, California, for the Armstrong Community Center Roof Replacement Project in the amount of $681,200 and authorize a 10% contingency of $68,120 for a total not-to-exceed contract amount of $749,320; and B. Authorize the City Manager, or his designee, to execute all documents required for the completion of the project including, but not limited to, contracts, agreements, assessments, easements, reduction of retention accounts, and filing a notice of completion at the conclusion of all construction related activities.

THE FOLLOWING COUNCIL GOALS ARE BEING ACHIEVED:

Invest in the City's Infrastructure (Water, Streets, Sewers, Parks, Storm Drains and Public Facilities)
FISCAL IMPACT: The recommended Construction Contract with C.I. Services, Inc. is $681,200 plus a 10% contingency of $68,120 for a total not-to-exceed contract amount of $749,320. The Fiscal Year 2024-25 Adopted Budget includes appropriations in the Capital Projects Fund for the Armstrong Community Center Roof Replacement Project.

BACKGROUND & ANALYSIS: The roof at the Armstrong Community Center has outlived its lifespan and has required increased maintenance over time due to deterioration. Staff recommends reroofing the Community Center with metal roof panels, which will provide faster evaporation and lower roof-top temperatures to reduce interior building temperatures and increase product life cycle.

On January 16, 2025, six (6) bids were received for Bid No. 1854 D&C22-014 Armstrong Community Center Roof Replacement. The bid results are listed below:
129

VENDOR LOCATION AMOUNT
C.I Services, Inc. Mission Viejo, CA $681,200
Southland Roofing, Inc. Los Angeles, CA $787,300
AME Builders, Inc. Upland, CA $938,300
Danny Letner, Inc. Orange, CA $940,604
Rite-Way Roof Corporation Fontana, CA $943,995
Best Contracting Services, Inc. Gardena, CA $983,035
C.I. Services, Inc., of Mission Viejo, California, was the apparent lowest responsible bidder. On January 17, 2025, the City received a protest letter from AME Builders, Inc. stating that C.I. Services, Inc. submitted a non-responsive bid because they failed to provide a required B License. The City responded to AME Builders, Inc. in a letter dated February 11, 2025, stating that the bid protest is meritless because it is the low bidder’s responsibility to provide the required licensing for bidding on public works projects to satisfactorily perform the duties stated in the Construction Contract.

City Staff is of the opinion that the low bidder has offered such a showing, and all irregularities are waived.

C.I. Services, Inc., of Mission Viejo, California, was the lowest responsive bidder that met all the required specifications with a cost of $681,200. Based on credentials and pricing, Staff recommends awarding Construction Contract No. D&C22-014 Armstrong Community Center Roof Replacement Project to C.I. Services, Inc. The project is estimated to be completed in June 2025. 130
D&C22-014 Armstrong Community Center Roof
Replacement -1-
SECTION 00500 – CONTRACT FOR CONSTRUCTION
This Contract for Construction (“Contract”), No. D&C22-014 is made and entered as of ____________, by and between City of Ontario, with its principal place of business at 303 East “B” Street, Ontario, CA 91764, sometimes hereinafter called the “City” and C.I. Services, Inc., sometimes hereinafter called “Contractor.”
WITNESSETH: That the parties hereto have mutually covenanted and agreed, and by these presents do covenant and agree with each other as follows:

ARTICLE 1. SCOPE OF WORK.

The Contractor shall perform all Work within the time stipulated in the Contract, and shall provide all labor, materials, equipment, tools, utility services, and transportation to complete all of the Work required in strict compliance with the Contract Documents as specified in Article 5, below, for the following Project:

Re-roof the Armstrong Community Center. Demo existing asphalt shingle roof and replace with new standing seam metal roof and new TMP membrane over existing flat mechanical areas & exterior roof gutters with new roof drain grates.

Contractor is an independent contractor and not an agent of the City. The Contractor and its surety shall be liable to the City for any damages arising as a result of the Contractor’s failure to comply with this obligation.

ARTICLE 2. TIME FOR COMPLETION.

Time is of the essence in the performance of the Work. The Work shall be commenced on the date stated in the City’s Notice to Proceed. The Contractor shall complete all Work required by the Contract Documents within 60 calendar days from the commencement date stated in the Notice to Proceed. By its signature hereunder, Contractor agrees the time for completion set forth above is adequate and reasonable to complete the Work.

ARTICLE 3. CONTRACT PRICE.

The City shall pay to the Contractor as full compensation for the performance of the Contract, subject to any additions or deductions as provided in the Contract Documents, and including all PAUL S. LEON SHEILA MAUTZ

CITY CLERK
JAMES R. MILHISER

CITY TREASURER

SCOTT OCHOA

CITY MANAGER
MAYOR
ALAN D. WAPNER

MAYOR PRO TEM
JIM W. BOWMAN

DEBRA PORADA

DAISY MACIAS

COUNCIL MEMBERS
131
D&C22-014 Armstrong Community Center Roof
Replacement -2- SECTION 00500 – CONTRACT FOR

CONSTRUCTION
applicable taxes and costs, the sum of Six Hundred Eighty-One Thousand Two Hundred Dollars ($681,200). Payment shall be made as set forth in the General Conditions. The City will pay to Contractor compensation based upon the prices set forth in the Bid Schedule.

ARTICLE 4. LIQUIDATED DAMAGES.

Contractor acknowledges that the City will sustain actual damages for each and every Day completion of the Project is delayed beyond the Contract Time. Because of the nature of the Project, it would be impracticable or extremely difficult to determine the City’s actual damages.

Accordingly, in accordance with Government Code section 53069.85, it is agreed that the Contractor will pay the City the sum of $250.00 (Two Hundred Fifty Dollars) for each and every calendar day of delay beyond the time prescribed in the Contract Documents for finishing the Work, as Liquidated Damages and not as a penalty or forfeiture. In the event this is not paid, the Contractor agrees the City may deduct that amount from any money due or that may become due the Contractor under the Contract. This Section does not exclude recovery of other damages specified in the Contract Documents. Liquidated damages may be deducted from progress payments due Contractor, Project retention or may be collected directly from Contractor, or from Contractor's surety. These provisions for liquidated damages shall not prevent the City, in case of Contractor's default, from terminating the Contractor.

Consistent with Public Contract Code Section 7102, Contractor will be compensated for damages incurred due to delays for which the City is responsible. The parties agree that determining Contractor’s exact delay damages is and will continue to be impracticable and extremely difficult.

As such, for each calendar day in excess of the Contract Time, the City shall pay to the Contractor $250.00 per day as Reverse Liquidated Damages and not as a penalty or forfeiture. Such amount shall constitute the only payment allowed for any City caused delays and shall necessarily include all overhead, all profits, all administrative costs, all bond costs, all labor, materials, equipment and rental costs and any other costs, expenses and fees incurred or sustained as a result of such delays. Notice of requests for delay damages and additional days shall be provided to the City within five (5) Days from the discovery of the circumstances giving rise to any delay or three (3) Days from the discovery of any latent or subsurface conditions giving rise to a delay.

ARTICLE 5. COMPONENT PARTS OF THE CONTRACT.

The “Contract Documents” include the following:

Notice Inviting Bids
Instructions to Bidders
Bid Forms
Bid Acknowledgement
Bid Schedule
Bid Guarantee
Designation of Subcontractors
Information Required of Bidders
Non-Collusion Declaration Form
Iran Contracting Act Certification
Public Works Contractor DIR Registration Certification
Performance Bond
Payment (Labor and Materials) Bond
Contract for Construction
132
D&C22-014 Armstrong Community Center Roof
Replacement -3- SECTION 00500 – CONTRACT FOR

CONSTRUCTION
General Conditions
Special Conditions
Specifications
Addenda
Construction Plans and Drawings
Standard Specifications for Public Works Construction “Greenbook”, latest edition, Except Sections 1-9
Applicable Local Agency Standards and Specifications, as last revised Reference Specifications
Approved and fully executed Change Orders
Permits
Any other documents contained in or incorporated into the Contract The Contractor shall complete the Work in strict accordance with all of the Contract Documents.

All of the Contract Documents are intended to be complementary. Work required by one of the Contract Documents and not by others shall be done as if required by all. In the event of conflict, the various Contract Documents will be given effect in the order set forth in the General Conditions. This Contract shall supersede any prior agreement of the parties.

ARTICLE 6. PROVISIONS REQUIRED BY LAW AND CONTRACTOR COMPLIANCE.

Each and every provision of law required to be included in these Contract Documents shall be deemed to be included in these Contract Documents. The Contractor shall comply with all requirements of applicable federal, state and local laws, rules and regulations, including, but not limited to, the provisions of the California Labor Code and California Public Contract Code which are applicable to this Work.

ARTICLE 7. INDEMNIFICATION.

Contractor shall provide indemnification and defense as set forth in the General Conditions.

ARTICLE 8. PREVAILING WAGES.

Contractor shall be required to pay the prevailing rate of wages in accordance with the Labor Code which such rates shall be made available at the City’s Office or may be obtained online at http://www.dir.ca.gov and which must be posted at the job site.

ARTICLE 9. FALSE CLAIMS.

Contractor acknowledges that if a false claim is submitted to the City, it may be considered fraud and Contractor may be subject to criminal prosecution. Contractor acknowledges that the False Claims Act, California Government Code sections 12650, et seq., provides for civil penalties where a person knowingly submits a false claim to a public entity. These provisions include within their scope false claims made with deliberate ignorance of the false information or in reckless disregard of the truth or falsity of the information. In the event the City seeks to recover penalties pursuant to the False Claims Act, it is entitled to recover its litigation costs, including attorneys’ fees. Contractor hereby acknowledges that the filing of a false claim may the Contractor to an administrative debarment proceeding wherein Contractor may be prevented from further bidding on public contracts for a period of up to five (5) years. 133
D&C22-014 Armstrong Community Center Roof
Replacement -4- SECTION 00500 – CONTRACT FOR

CONSTRUCTION
[REMAINDER OF PAGE LEFT INTENTIONALLY BLANK]
134
D&C22-014 Armstrong Community Center Roof
Replacement -5- SECTION 00500 – CONTRACT FOR

CONSTRUCTION
IN WITNESS WHEREOF, this Contract has been duly executed by the above-named parties, on the day and year above written.

CITY OF ONTARIO
By:

Scott Ochoa
City Manager
ATTEST:

By:

Sheila Mautz, City Clerk
APPROVED AS TO FORM:

By:

Best Best & Krieger LLP
City Attorney
C.I. Services, Inc.

By:

Its:

Printed Name:
[DELETE THE FOLLOWING SIGNATURE
LINE IF NOT REQUIRED]
By:

Its:

Printed Name:
____________________________________
Contractor’s License Number and
Classification
____________________________________
DIR Registration Number
[IF CORPORATION, TWO SIGNATURES,

PRESIDENT OR VICE PRESIDENT AND
SECRETARY OR TREASURER REQUIRED]

END OF CONTRACT
135
D&C22-014 Armstrong Community Center Roof
Replacement -6- SECTION 00500 – CONTRACT FOR

CONSTRUCTION
Notary Acknowledgment
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

STATE OF CALIFORNIA
COUNTY OF ______________
On , 20___, before me, _______________________________, Notary Public, personally appeared , who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature of Notary Public

OPTIONAL
Though the information below is not required by law, it may prove valuable to persons relying on the document and could prevent fraudulent removal and reattachment of this form to another document.

CAPACITY CLAIMED BY SIGNER DESCRIPTION OF ATTACHED DOCUMENT  Individual
 Corporate Officer
Title(s) Title or Type of Document
 Partner(s)  Limited
 General Number of Pages
 Attorney-In-Fact
 Trustee(s)
 Guardian/Conservator Date of Document
 Other:

Signer is representing:

Name Of Person(s) Or Entity(ies)
Signer(s) Other Than Named Above
136
D&C22-014 Armstrong Community Center Roof
Replacement -7- SECTION 00610 – BOND FORMS
SECTION 00610 – BOND FORMS
Performance Bond
KNOW ALL PERSONS BY THESE PRESENTS:

THAT WHEREAS, the City of Ontario, with its principal place of business at 303 East “B” Street, Ontario, CA 91764, (hereinafter referred to as the “City”) has awarded to _________________________, (hereinafter referred to as the “Contractor”) an agreement for Contract No.D&C22-014 Armstrong Community Center Roof replacement, (hereinafter referred to as the “Project”).

WHEREAS, the work to be performed by the Contractor is more particularly set forth in the Contract Documents for the Project dated ________________, (hereinafter referred to as “Contract Documents”), the terms and conditions of which are expressly incorporated herein by reference; and
WHEREAS, the Contractor is required by said Contract Documents to perform the terms thereof and to furnish a bond for the faithful performance of said Contract Documents.

NOW, THEREFORE, we, ______________________, the undersigned Contractor and ________________________________________________ as Surety, a corporation organized and duly authorized to transact business under the laws of the State of California, are held and firmly bound unto the City in the sum of ___________________________ DOLLARS, ($____________), said sum being not less than one hundred percent (100%) of the total amount of the Contract, for which amount well and truly to be made, we bind ourselves, our heirs, executors and administrators, successors and assigns, jointly and severally, firmly by these presents.

THE CONDITION OF THIS OBLIGATION IS SUCH, that, if the 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 the Contract Documents and any alteration thereof made as therein provided, on its part, 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 all obligations including the one (1) year guarantee of all materials and workmanship; and shall indemnify and save harmless the City, its officials, officers, employees, and authorized volunteers, as stipulated in said Contract Documents, then this obligation shall become null and void; otherwise it shall be and remain in full force and effect.

As a part of the obligation secured hereby and in addition to the face amount specified therefore, there shall be included costs and reasonable expenses and fees including reasonable attorney’s fees, incurred by the City in enforcing such obligation.

As a condition precedent to the satisfactory completion of the Contract Documents, unless otherwise provided for in the Contract Documents, the above obligation shall hold good for a period of one (1) year after the acceptance of the work by the City, during which time if Contractor shall fail to make full, complete, and satisfactory repair and replacements and totally protect the City from loss or damage resulting from or caused by defective materials or faulty workmanship.

The obligations of Surety hereunder shall continue so long as any obligation of Contractor remains. Nothing herein shall limit the City’s rights or the Contractor or Surety’s obligations under 137
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the Contract, law or equity, including, but not limited to, California Code of Civil Procedure Section 337.15.

Whenever Contractor shall be, and is declared by the City to be, in default under the Contract Documents, the Surety shall remedy the default pursuant to the Contract Documents, or shall promptly, at the City’s option:
i. Take over and complete the Project in accordance with all terms and conditions in the Contract Documents; or
ii. Obtain a bid or bids for completing the Project in accordance with all terms and conditions in the Contract Documents and upon determination by Surety of the lowest responsive and responsible bidder, arrange for a Contract between such bidder, the Surety and the City, and make available as work progresses sufficient funds to pay the cost of completion of the Project, less the balance of the contract price, including other costs and damages for which Surety may be liable. The term “balance of the contract price” as used in this paragraph shall mean the total amount payable to Contractor by the City under the Contract and any modification thereto, less any amount previously paid by the City to the Contractor and any other set offs pursuant to the Contract Documents.
iii. Permit the City to complete the Project in any manner consistent with California law and make available as work progresses sufficient funds to pay the cost of completion of the Project, less the balance of the contract price, including other costs and damages for which Surety may be liable. The term “balance of the contract price” as used in this paragraph shall mean the total amount payable to Contractor by the City under the Contract and any modification thereto, less any amount previously paid by the City to the Contractor and any other set offs pursuant to the Contract Documents.

Surety expressly agrees that the City may reject any contractor or subcontractor which may be proposed by Surety in fulfillment of its obligations in the event of default by the Contractor.

Surety shall not utilize Contractor in completing the Project nor shall Surety accept a bid from Contractor for completion of the Project if the City, when declaring the Contractor in default, notifies Surety of the City’s objection to Contractor’s further participation in the completion of the Project.

The Surety, for value received, hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of the Contract Documents or to the Project to be performed thereunder 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 Documents or to the Project.
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IN WITNESS WHEREOF, we have hereunto set our hands and seals this _______ day of ______________, 20___.
(Corporate Seal)
Contractor/ Principal
By
Title
(Corporate Seal)
Surety
By
Attorney-in-Fact
(Attach Attorney-in-Fact Certificate) Title
The rate of premium on this bond is ____________ per thousand. The total amount of premium charges is $_______________________________.
(The above must be filled in by corporate attorney.)

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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Notary Acknowledgment
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature of Notary Public

Signer is representing:

Name Of Person(s) Or Entity(ies)
Signer(s) Other Than Named Above
NOTE: This acknowledgment is to be completed for Contractor/Principal. 140
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Notary Acknowledgment
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature of Notary Public

Signer is representing:

Name Of Person(s) Or Entity(ies)
Signer(s) Other Than Named Above
NOTE: This acknowledgment is to be completed for the Attorney-in-Fact. The Power-of Attorney to local representatives of the bonding company must also be attached.

END OF PERFORMANCE BOND
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Payment Bond (Labor and Materials).

KNOW ALL MEN BY THESE PRESENTS That
WHEREAS, the City of Ontario , with its principal place of business at 303 East “B” Street, Ontario, CA 91764 (hereinafter designated as the “City”), by action taken or a resolution passed ___________________ , 20_____, has awarded to ________________________ hereinafter designated as the “Principal,” a contract for the work described as follows: Contract No. D&C22- 014 Armstrong Community Center Roof replacement (the “Project”); and WHEREAS, the work to be performed by the Contractor is more particularly set forth in the Contract Documents for the Project dated ________________, (hereinafter referred to as “Contract Documents”), the terms and conditions of which are expressly incorporated herein by reference; and
WHEREAS, said Principal is required to furnish a bond in connection with said contract; providing that if said Principal or any of its Subcontractors shall fail to pay for any materials, provisions, provender, equipment, or other supplies used in, upon, for or about the performance of the work contracted to be done, or for any work or labor done thereon of any kind, or for amounts due under the Unemployment Insurance Code or for any amounts required to be deducted, withheld, and paid over to the Employment Development Department from the wages of employees of said Principal and its Subcontractors with respect to such work or labor the Surety on this bond will pay for the same to the extent hereinafter set forth.

NOW THEREFORE, we, the Principal and __________________________ as Surety, are held and firmly bound unto the City in the penal sum of ______________ Dollars ($___________) lawful money of the United States of America, for the payment of which sum 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 said Principal, his or its subcontractors, heirs, executors, administrators, successors or assigns, shall fail to pay any of the persons named in Civil Code Section 9100, fail to pay for any materials, provisions or other supplies, used in, upon, for or about the performance of the work contracted to be done, or for any work or labor thereon of any kind, or amounts due under the Unemployment Insurance Code with respect to work or labor performed under the contract, or for any amounts required to be deducted, withheld, and paid over to the Employment Development Department or Franchise Tax Board from the wages of employees of the contractor and his subcontractors pursuant to Revenue and Taxation Code Section 18663, with respect to such work and labor the Surety or Sureties will pay for the same, in an amount not exceeding the sum herein above specified, and also, in case suit is brought upon this bond, all litigation expenses incurred by the City in such suit, including reasonable attorneys’ fees, court costs, expert witness fees and investigation expenses.

This bond shall inure to the benefit of any of the persons named in Civil Code Section 9100 so as to give a right of action to such persons or their assigns in any suit brought upon this bond.

It is further stipulated and agreed that the Surety on this bond shall not be exonerated or released from the obligation of this bond by any change, extension of time for performance, addition, alteration or modification in, to, or of any contract, plans, specifications, or agreement pertaining or relating to any scheme or work of improvement herein above described, or pertaining or relating 142
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to the furnishing of labor, materials, or equipment therefore, nor by any change or modification of any terms of payment or extension of the time for any payment pertaining or relating to any scheme or work of improvement herein above described, nor by any rescission or attempted rescission or attempted rescission of the contract, agreement or bond, nor by any conditions precedent or subsequent in the bond attempting to limit the right of recovery of claimants otherwise entitled to recover under any such contract or agreement or under the bond, nor by any fraud practiced by any person other than the claimant seeking to recover on the bond and that this bond be construed most strongly against the Surety and in favor of all persons for whose benefit such bond is given, and under no circumstances shall Surety be released from liability to those for whose benefit such bond has been given, by reason of any breach of contract between the owner or the City and original contractor or on the part of any obligee named in such bond, but the sole conditions of recovery shall be that claimant is a person described in Civil Code Section 9100, and has not been paid the full amount of his claim.

The Surety, for value received, hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of the Contract to be performed thereunder, 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 Contract, including but not limited to, the provisions of Sections 2819 and 2845 of the California Civil Code.

IN WITNESS WHEREOF, we have hereunto set our hands and seals this _______ day of ______________, 20__.
(Corporate Seal)
Contractor/ Principal
By
Title
(Corporate Seal)
Surety
By
Attorney-in-Fact
(Attach Attorney-in-Fact Certificate) Title
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Notary Acknowledgment
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature of Notary Public

Signer is representing:

Name Of Person(s) Or Entity(ies)
Signer(s) Other Than Named Above
NOTE: This acknowledgment is to be completed for Contractor/Principal. 144
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Notary Acknowledgment
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature of Notary Public

Signer is representing:

Name Of Person(s) Or Entity(ies)
Signer(s) Other Than Named Above
NOTE: This acknowledgment is to be completed for the Attorney-in-Fact. The Power-of-Attorney to local representatives of the bonding company must also be attached.

END OF PAYMENT BOND
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SECTION 00700 – GENERAL CONDITIONS
ARTICLE 1 -TERMS; DEFINITIONS

1.1 Defined Terms
A. Whenever used in the Contract Documents and printed with initial capital letters, the terms listed below will have the meanings indicated which are applicable to both the singular and plural thereof. In addition to terms specifically defined below, terms with initial capital letters in the Contract Documents include references to identified articles and paragraphs, and the titles of other documents or forms.

1. Act of God – An earthquake of magnitude of 3.5 or higher on the Richter scale or a tidal wave.

2. Addenda -- Written or graphic instruments issued prior to the submission of Bids which clarify, correct, or change the Contract Documents.

3. Additional Work -- New or unforeseen work will be classified as “Additional Work” when the Engineer determines that it is not covered by the Contract.

4. Applicable Laws -- The laws, statutes, ordinances, rules, codes, regulations, permits, and licenses of any kind, issued by local, state or federal governmental authorities or private authorities with jurisdiction (including utilities), to the extent they apply to the Work.

5. Bid -- The offer or proposal of a Bidder submitted on the prescribed form setting forth the prices and other terms for the Work to be performed.

6. Bid Guarantee -- The Bid Bond, cashier’s check, or certified check to be made by the Bidder, which is to accompany the Bid as a guaranty of good faith to enter into a written contract.

7. Bidder -- The individual or entity who submits a Bid directly to the City.

8. Change Order (“CO”) -- A document that authorizes an addition, deletion, or revision in the Work or an adjustment in the Contract Price or the Contract Times, issued on or after the Effective Date of the Contract, in accordance with the Contract Documents and in the form contained in the Contract Documents.

9. Change Order Request (“COR”) -- A request made by the Contractor for an adjustment in the Contract Price and/or Contract Times as the result of a Contractor-claimed change to the Work.

10. City’s Representative – The City of Ontario, and acting through properly authorized agents, such as the Engineer or such other agents acting within the scope of the particular duties entrusted to them. Also sometimes referred to as the “City’s Representative” or “Representative” in the Contract Documents. The terms the City and Owner may be used interchangeably
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11. Claim -- A demand or assertion by the City or Contractor seeking an adjustment of Contract Price or Contract Times, or both, or other relief with respect to the terms of the Contract. A demand for money or services by a third party is not a Claim.

12. Contract -- The entire integrated written agreement between the City and Contractor concerning the Work. “Contract” may be used interchangeably with “Agreement” in the Contract Documents. The Contract supersedes prior negotiations, representations, or agreements, whether written or oral, and includes all Contract Documents.

13. Contract Documents -- The documents listed in Section 00 52 13, Article 5 of the Contract for Construction. Some documents provided by the City to the Bidders and Contractor, including but not limited to reports and drawings of subsurface and physical conditions are not Contract Documents.

14. Contract Price -- Amount to be paid by the City to the Contractor as full compensation for the performance of the Contract and completion of the Work, subject to any additions or deductions as provided in the Contract Documents, and including all applicable taxes and costs.

15. Contract Time -- The number of days or the dates stated in the Contract Documents to: achieve defined milestones, if any; and to complete the Work so that it is ready for final payment.

16. Contractor -- The individual or entity with which the City has contracted for performance of the Work.

1. Contractor’s Designated On-Site Representative -- The Contractor’s Designated On-Site Representative will be identified by the Contractor and shall not be changed without prior written consent of the City.

2. Critical Supply Shortage -- An unusual shortage in materials that is (a) supported by documented proof that Contractor made every effort to obtain such materials from all available sources; (b) such shortage is due to the fact that such materials are not physically available from single or multiple sources or could have been obtained only at exorbitant prices entirely inconsistent with current and standard rates taking into account the quantities involved and the usual industry practices in obtaining such quantities; and (c) such shortages and the difficulties in obtaining alternate sources of materials could not have been known or anticipated by Contractor at the time it submitted its bid or entered the Contract. Market fluctuations in prices of materials, whether or not resulting from a Force Majeure Event, does not constitute a Critical Supply Shortage.

3. Day -- A calendar day of 24 hours measured from midnight to the next midnight.

4. Defective Work -- Work that is unsatisfactory, faulty, or deficient; or that does not conform to the Contract Documents; or that does not meet the requirements of any inspection, reference standard, test, or approval referenced in the Contract Documents.
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5. Demobilization -- The complete dismantling and removal by the Contractor of all of the Contractor’s temporary facilities, equipment, and personnel at the Site.

6. Drawings -- That part of the Contract Documents prepared by of the Engineer of Record which graphically shows the scope, extent, and character of the Work to be performed by Contractor. Shop Drawings and other Contractor Submittals are not Drawings as so defined.

7. Effective Date of the Contract -- The date indicated in the Contract on which it becomes effective, but if no such date is indicated, it means the date on which the Contract is signed and delivered by the last of the two parties to sign and deliver.

8. Engineer -- Whenever not qualified, shall mean the City Engineer or the Engineer authorized to act for and in behalf of the City, acting either directly or through properly authorized agents, such agents acting severally within the scope of the particular duties entrusted to them.

9. Force Majeure Event -- An event that materially affects a party’s performance and is one or more of the following: (1) Acts of God or other natural disasters occurring at the Site; (2) terrorism or other acts of a public enemy; (3) orders of governmental authorities (including, without limitation, unreasonable and unforeseeable delay in the issuance of permits or approvals by governmental authorities that are required for the Work); (4) pandemics, epidemics or quarantine restrictions; (5) strikes and other organized labor action occurring at the Site and the effects thereof on the Work, only to the extent such strikes and other organized labor action are beyond the control of Contractor and its Subcontractors, of every Tier, and to the extent the effects thereof cannot be avoided by use of replacement workers; and (6) a Critical Supply Shortage. For purposes of this section, “orders of governmental authorities,” includes ordinances, emergency proclamations and orders, rules to protect the public health, welfare and safety, and other actions of the City in its capacity as a municipal authority.

10. Hazardous Waste -- The term “Hazardous Waste” shall have the meaning provided in Section 104 of the Solid Waste Disposal Act (42 U.S.C. § 6903) as amended from time to time, or any substance or material identified as hazardous under any state or federal statute governing handling, disposal and/or cleanup of any such substance or material, whichever is more restrictive.

11. Holiday – Holidays occur on:

New Year’s Day - January 1
President’s Day – Third Monday in February
Memorial Day - Last Monday in May
Independence Day - July 4
Labor Day - First Monday in September
Veteran’s Day - November 11
Thanksgiving Day - Fourth Thursday in November
Friday after Thanksgiving
Christmas Eve – December 24
Christmas Day - December 25
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Day After Christmas – December 26
New Year’s Eve – December 31
If any Holiday listed above falls on a Saturday, Saturday and the preceding Friday are both Holidays. If the Holiday should fall on a Sunday, Sunday and the following Monday are both Holidays.

12. Notice of Award -- The written notice by the City to the Successful Bidder stating that upon timely compliance by the Successful Bidder with the conditions precedent listed therein, the City will sign and deliver the Contract.

13. Notice of Completion -- The form which may be executed by the City constituting final acceptance of the Project.

14. Notice to Proceed -- A written notice given by the City to Contractor fixing the date on which the Contractor may proceed with the Work and when Contract Times will commence to run.

15. Project -- The total construction of which the Work to be performed under the Contract Documents may be the whole, or a part.

16. Record Drawings – The record set of as-builts prepared by the Contractor during the Work in accordance with the requirements of the General Conditions.

17. Recyclable Waste Materials -- Materials removed from the Site which are required to be diverted to a recycling center rather than an area landfill. Recyclable Waste Materials include, but are not limited to, asphalt, concrete, brick, concrete block, and rock.

18. Sample -- A physical example furnished by the Contractor to illustrate materials, equipment or workmanship; to establish standards by which the Work will be judged.

19. Schedule of Submittals -- A schedule, prepared and maintained by Contractor, of required submittals and the time requirements to facilitate scheduled performance of related construction activities.

20. Shop Drawings -- All drawings, diagrams, illustrations, schedules, and other data or information which are specifically prepared or assembled by or for Contractor and submitted by Contractor to illustrate some portion of the Work.

21. Site -- Lands or areas indicated in the Contract Documents as being furnished by the City upon which the Work is to be performed, including rights-of-way and easements for access thereto, and such other lands furnished by the City which are designated for the use of Contractor.

22. Specifications -- That part of the Contract Documents consisting of written requirements for materials, equipment, systems, standards and workmanship as applied to the Work, and certain administrative requirements and procedural matters applicable thereto.
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23. Stop Payment Notice -- A written notice as defined in Civil Code section 8044.

24. Subcontractor -- An individual or entity other than a Contractor having a contract with any other entity than the City for performance of any portion of the Work at the Site.

25. Submittal -- Written and graphic information and physical samples prepared and supplied by the Contractor demonstrating various portions of the Work.

26. Successful Bidder -- The responsible Bidder submitting a responsive Bid to whom the City makes an award.

27. Supplier -- A manufacturer, fabricator, supplier, distributor, material man, or vendor having a direct contract with Contractor or with any Subcontractor to furnish materials or equipment used in the performance of the Work or to be incorporated in the Work.

28. Underground Facilities -- All underground pipelines, conduits, ducts, cables, wires, manholes, vaults, tanks, tunnels, or other such facilities or attachments, and any encasements containing such facilities, including those that convey electricity, gases, steam, liquid petroleum products, telephone or other communications, cable television, water, wastewater, storm water, other liquids or chemicals, or traffic or other control systems.

29. Unit Price Work -- Work to be paid for on the basis of unit prices as provided by the Contractor in its Bid or as adjusted in accordance with the Contract Documents.

30. Warranty -- A guarantee provided to the City by the Contractor that the Work will remain free of defects and suitable for its intended use for the period required by the Contract Documents or the longest period permitted by the law of this state, whichever is longer.

31. Work -- The entire construction or the various separately identifiable parts thereof required to be provided under the Contract Documents. Work includes and is the result of performing or providing all labor, services, and documentation necessary to produce such construction, and furnishing, installing, and incorporating all materials and equipment into such construction, all as required by the Contract Documents.

1.2 Terminology.

A. The words and terms below are not defined but, when used in the Contract Documents, have the indicated meaning.

1. The word “furnish,” when used in connection with services, materials, or equipment, shall mean to supply and deliver said services, materials, or equipment to the Site (or some other specified location) ready for use or installation and in usable or operable condition.
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2. The word “install,” when used in connection with services, materials, or equipment, shall mean to put into use or place in final position said services, materials, or equipment complete and ready for intended use.

3. The words “perform” or “provide,” when used in connection with services, materials, or equipment, shall mean to furnish and install said services, materials, or equipment complete and ready for intended use.

4. Regardless of whether “furnish,” “install,” “perform,” or “provide” is used in connection with services, materials, or equipment, an obligation of Contractor is implied.

B. Unless stated otherwise in the Contract Documents, words or phrases that have a well-known technical or construction industry or trade meaning are used in the Contract Documents in accordance with such recognized meaning.

ARTICLE 2 -PRELIMINARY MATTERS

2.1 Delivery of Contract Documents
A. Within ten (10) Days after receipt of the Notice of Award and before the City will execute the Contract, the Contractor shall furnish and file with the City a signed Contract and the necessary Performance Bond, Payment Bond, and Certificates of Insurance and Endorsements, as well as any other documents specified in the Contract Documents.

2.2 Bonds
A. Contractor shall submit the bonds on the forms provided with the Contract Documents, duly executed by a responsible corporate surety admitted to transact surety business in the State of California, as defined in Code of Civil Procedure section 995.120, and listed in the United States Department of the Treasury circular entitled "Companies Holding Certificates of Authority as Acceptable Sureties on Federal Bonds and as Acceptable Reinsuring Companies," authorized to do business in the State of California and acceptable to the City conditioned upon the faithful performance by the Contractor of all requirements of the Contract Documents. Each of the bonds shall be in a sum no less than one hundred percent (100%) of the Contract Price. Bonds shall be delivered to the City within ten (10) Days after receipt of the Notice of Award and before execution of the Contract by the City.

2.3 Evidence of Insurance
A. Prior to commencing any Work but no later than ten (10) Days after receipt of the Notice of Award, the Contractor shall submit or cause to be submitted any and all Certificates of Insurance and Endorsements, showing that the Contractor has the required insurance, to the attention of the City. Such insurance is to be provided at the sole cost and expense of the Contractor. No Work shall be performed until all of the required insurance has been received and approved.
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2.4 Execution of the Contract
A. Upon receipt of the required Contract Documents, the City will execute the Contract, establishing the Effective Date of the Contract.

2.5 Contractor’s Failure to Perform
A. Should Contractor fail to comply with timelines provided above, the City shall retain the right to enforce and collect on the Contractor’s Bid Guarantee, rescind award to the Contractor and award the Contract to the next lowest responsive, responsible bidder as determined by the City. If the City elects to accept bonds and insurance submitted late, the Contract Times will begin to run as of the date stated in the Notice to Proceed. However, the number of days beyond the original ten (10) Days it took to receive the properly executed Contract and related items may be deducted from the Contract Times.

2.6 Commencement of Contract Times; Notice to Proceed
A. The City will not issue a Notice to Proceed until after the Effective Date of the Contract.

Work shall commence within ten (10) Days of the date stated in the Notice to Proceed.

The Contract Times begin to run on the date specified in the Notice to Proceed. No Work shall be done at the Site prior to the issuance of the Notice to Proceed.

2.7 Copies of Documents
A. Contractor will be furnished, free of charge, five (5) copies of the Contract Documents. Additional copies may be obtained at cost of reproduction. Contractor shall maintain a clean, undamaged set of Contract Documents, including Submittals, at the Project site.

2.8 Substitution Requests, Schedule of Submittals, and Schedule A. Substitution Requests. Within thirty-five (35) days of Contract award (unless otherwise specified in the Contract Documents), Contractor shall provide all substitution requests as further described in the General Conditions.

B. Schedule of Submittals. Within five (5) Days after the issuance of the Notice of Proceed (unless otherwise specified in the Contract Documents), Contractor shall submit to the City a Schedule of Submittals that conforms with the requirements of Section 00 72 00, Article 5.21.

C. Schedule. Within ten (10) days after the issuance of the Notice of Proceed (unless otherwise specified in the Contract Documents), the Contractor shall submit a construction schedule that conforms with the requirements of Section 00 72 00, Article 8.2.

2.9 Preconstruction Conference; Designation of Authorized Representatives.

A. Before any Work at the Site is started, a conference attended by the City, Contractor, Engineer, and others as appropriate will be held to establish a working understanding among the parties as to the Work and to discuss the schedules 152
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referred to herein, procedures for handling Submittals and Shop Drawings, processing applications for payment, and maintaining required records.

B. At this conference the City and Contractor each shall designate, in writing, a specific individual to act as its authorized representative with respect to the services and responsibilities under the Contract. Such individuals shall have the authority to transmit instructions, receive information, render decisions relative to the Contract, and otherwise act on behalf of each respective party.

2.10 Subcontractor Mobilization Meeting.

A. Prior to the start of each major Subcontractor’s Site Work, the Contractor, the involved Subcontractor, and Engineer shall attend a pre-start meeting to discuss the schedule, coordination, procedures, and other administrative issues.

2.11 Authority of Council; Engineer
A. The City Council has the final authority in all matters affecting the Work. Within the scope of the Contract, the Engineer has the authority to enforce compliance with the Contract Documents. The Contractor shall promptly comply with instructions from the Engineer.

B. The decision of the Engineer is final and binding on all questions relating to:

1. quantities;

2. acceptability of material, equipment, or work;

3. execution, progress or sequence of work;

4. interpretation of the Plans, Specifications, or other Contract Documents; and

5. Any other areas specifically identified in the Contract Documents or under the law.

C. Compliance with instructions from the Engineer shall be a condition precedent to any payment under the Contract, unless otherwise ordered by the City Council.

2.12 Mobilization
A. When a Bid item is included in the Bid Schedule for mobilization, the costs of Work in advance of construction operations and not directly attributable to any specific bid item will be included in the progress estimate. When no bid item is provided for mobilization payment for such costs will be deemed to be included in the other items of the Work.

B. Payment for mobilization based on the lump sum provided in the Bid Schedule, shall constitute full compensation for all such Work. No payment for mobilization will be made until all of the listed items have been completed to the satisfaction of the Engineer. The scope of the Work included under mobilization shall include, but shall not be limited to, the following principal items:
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1. Obtaining and paying for all bonds, insurance, and permits.

2. Moving on to the Project Site of all Contractor’s plant and equipment required for the first month’s operations.

3. Installing temporary construction power, wiring, and lighting facilities, as applicable.

4. Establishing fire protection system, as applicable.

5. Developing and installing a construction water supply, as applicable.

6. Providing and maintaining the field office trailers for the Contractor, if necessary, and the Engineer (if specified), complete, with all specified furnishings and utility services.

7. Providing on-site sanitary facilities and potable water facilities as specified per CalOSHA and these Contract Documents.

8. Furnishing, installing, and maintaining all storage buildings or sheds required for temporary storage of products, equipment, or materials that have not yet been installed in the Work. All such storage shall meet manufacturer’s specified storage requirements, and the specific provisions of the specifications, including temperature and humidity control, if recommended by the manufacturer, and for all security.

9. Arranging for and erection of Contractor’s work and storage yard.

10. Posting all OSHA required notices and establishment of safety programs per CalOSHA.

11. Full-time presence of Contractor’s superintendent at the job Site as required herein.

12. Submittal of construction schedule as required by the Contract Documents.

ARTICLE 3 -CONTRACT DOCUMENTS; INTENT

3.1 Examination of Drawings, Specifications, and Site of Work A. Examination of Contract Documents; Site. Before commencing any portion of the Work, Contractor shall again carefully examine all applicable Contract Documents, the Project Site, and other information given to Contractor as to materials and methods of construction and other Project requirements. Contractor shall immediately notify the Engineer of any potential error, inconsistency, ambiguity, conflict, or lack of detail or explanation. If Contractor performs, permits, or causes the performance of any Work which is in error, inconsistent or ambiguous, or not sufficiently detailed or explained, Contractor shall bear any and all resulting costs, including, without limitation, the cost of correction. In no case shall the Contractor or any Subcontractor proceed with Work if uncertain as to the applicable requirements.
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B. Additional Instructions. After notification of any error, inconsistency, ambiguity, conflict, or lack of detail or explanation, the Engineer will provide any required additional instructions, by means of drawings or other written direction, necessary for proper execution of Work.

C. Quality of Parts, Construction and Finish. All parts of the Work shall be of the best quality of their respective kinds and the Contractor must use all diligence to inform itself fully as to the required construction and finish.

D. Contractor’s Variation from Contract Document Requirements. If it is found that the Contractor has varied from the requirements of the Contract Documents including the requirement to comply with all Applicable Laws, the Engineer may at any time, before or after completion of the Work, order the improper Work removed, remade or replaced by the Contractor at the Contractor’s expense.

3.2 Intent of Contract Documents
A. The Contract Documents are complementary; what is required by any one will be binding as if required by all. It is the intent of the Contract Documents to describe a functionally complete Project (or part thereof) to be constructed in accordance with the Contract Documents. Any labor, documentation, services, materials, or equipment that reasonably may be inferred from the Contract Documents or from prevailing custom or trade usage as being required to produce the indicated result will be provided whether or not specifically called for, at no additional cost to the City.

B. The Contractor shall furnish, unless otherwise provided in the Contract Documents, all materials, implements, machinery, equipment, tools, supplies and labor necessary to the prosecution and completion of the Project.

C. Clarifications and interpretations of the Contract Documents shall be issued by the Engineer as provided in these General Conditions.

D. If utilities to equipment/fixtures are not shown but are necessary to operate the equipment/fixtures, the utilities service installation is considered to be part of the Work. The implied Work will conform to the appropriate sections of the Contract Documents.

E. Organization of the Contract Documents into divisions, sections, and articles, and arrangement of drawings shall not control the Contractor in dividing Work among Subcontractors or in establishing the extent of Work to be performed by any trade.

3.3 Reference Standards.

A. Standards, Specifications, Codes, Laws, and Regulations.

1. Reference to federal specifications, federal standards, other standards, specifications, manuals, or codes of any technical society, organization, or association, or to Applicable Laws, whether such reference be specific or by implication, shall mean the standard, specification, manual, code, or Applicable Laws in effect at the time of opening of Bids (or on the Effective Date of the 155
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Contract if there were no Bids), except as may be otherwise specifically stated in the Contract Documents.

2. No provision of any such standard, specification, manual, or code, or any instruction of a Supplier, shall be effective to change the duties or responsibilities of the City, Contractor, or any of their Subcontractors, consultants, agents, or employees, from those set forth in the Contract Documents. No such provision or instruction shall be effective to assign to the City, or any of their officers, directors, members, partners, employees, agents, consultants, or subcontractors, any duty or authority to supervise or direct the performance of the Work or any duty or authority to undertake responsibility inconsistent with the provisions of the Contract Documents.

3.4 Reporting and Resolving Discrepancies; Order of Precedence.

A. Reporting Discrepancies.

1. The Contract Documents are intended to be fully cooperative and complementary.

Before undertaking each part of the Work, Contractor shall carefully study and compare the Contract Documents and check and verify pertinent figures therein and all applicable field measurements. Contractor shall promptly report in writing to the City any conflict, error, ambiguity, or discrepancy which Contractor discovers, should have discovered, or has actual knowledge of, and shall obtain a written interpretation or clarification from the City before proceeding with any Work affected thereby. If, during the performance of the Work, Contractor discovers any conflict, error, ambiguity, or discrepancy within the Contract Documents, or between the Contract Documents and (i) any Applicable Law, (ii) any standard, specification, manual, or code, or (iii) any instruction of any Supplier, then Contractor shall promptly submit a written Request for Information (RFI) to the City.

Contractor shall not proceed with the Work affected thereby (except in an emergency) until an amendment or supplement to the Contract Documents has been issued by one of the methods indicated in the Contract Documents, and any Work performed by Contractor before receipt of an amendment or supplement shall be at Contractor’s own risk.

B. Order of Precedence.

1. In case of conflicts between the Contract Documents, the order of precedence shall be as follows:
a. Permits from other agencies as may be required by law b. Change Orders, most recent first
c. Contract
d. Addenda, most recent first
e. Special Conditions
f. Specifications
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g. Construction Plans and Drawings(Contract Drawings)
h. General Conditions
i. Instructions to Bidders
j. Notice Inviting Bids
k. Contractor’s Bid (Bid Forms)
l. Standard Specifications for Public Works Construction “Greenbook” latest edition (Sections 1-9 Excluded)
m. Applicable Local Agency Standards and Specifications n. Standard Drawings
o. Reference Documents

2. With reference to the Drawings the order of precedence shall be as follows:
a. Figures govern over scaled dimensions
b. Detail drawings govern over general drawings
c. Addenda/Change Order drawings govern over Drawings
d. Contract Drawings govern over Standard Drawings
e. Contract Drawings govern over Shop Drawings

3. Notwithstanding the orders of precedence established above, in the event of conflicts, the higher standard, higher quality and most expensive shall always apply.

3.5 Amending and Supplementing Contract Documents.

A. The Contract Documents may be amended to provide for additions, deletions, and revisions in the Work or to modify the terms and conditions thereof only by Change Order or written amendment to the Contract duly executed by the parties.

B. The requirements of the Contract Documents may be supplemented, and minor variations and deviations in the Work may be authorized at no cost to the City, by one or more of the following ways:

1. The City’s review of a Submittal, Shop Drawing, Sample or substitution request without exception (subject to the provisions of the Contract Documents); or

2. The City’s issuance of a response to an RFI.

C. However, no review or RFI response will reduce or modify the Contractor’s obligation to fully satisfy and comply with the requirements of the Contract Documents. 157
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3.6 Reuse of Documents.

A. Contractor and any Subcontractor or Supplier shall not:

1. have or acquire any title to or ownership rights in any of the Drawings, Specifications, or other documents (or copies of any thereof) prepared by or bearing the seal of Engineer of Record or its consultants, including electronic media editions; or

2. reuse any such Drawings, Specifications, other documents, or copies thereof on extensions of the Project or any other project without written consent of the City and Engineer of Record and specific written verification or adaptation by Engineer of Record.

B. The prohibitions of this Article will survive final payment, or termination of the Contract. Nothing herein shall preclude Contractor from retaining copies of the Contract Documents for record purposes.

ARTICLE 4 -INDEMNIFICATION; INSURANCE

4.1 Indemnification
A. To the fullest extent permitted by law, Contractor shall immediately defend (with counsel of the City’s choosing), indemnify and hold harmless the City, its officials, officers, agents, employees, and representatives, and each of them from and against:

1. Any and all claims, demands, causes of action, costs, expenses, injuries, losses or liabilities, in law or in equity, of every kind or nature whatsoever, but not limited to, injury to or death, including wrongful death, of any person, and damages to or destruction of property of any person, arising out of, related to, or in any manner directly or indirectly connected with the Work or this Contract, including claims made by subcontractors for nonpayment, including without limitation the payment of all consequential damages and attorney’s fees and other related costs and expenses, however caused, regardless of whether the allegations are false, fraudulent, or groundless, and regardless of any negligence of the City or its officers, employees, or authorized volunteers (including passive negligence), except the sole negligence or willful misconduct or active negligence of the City or its officials, officers, employees, or authorized volunteers.

2. Contractor’s defense and indemnity obligation herein includes, but is not limited to damages, fines, penalties, attorney’s fees and costs arising from claims under the Americans with Disabilities Act (ADA) or other federal or state disability access or discrimination laws arising from Contractor’s Work during the course of construction of the improvements or after the Work is complete, as the result of defects or negligence in Contractor’s construction of the improvements.

3. Any and all actions, proceedings, damages, costs, expenses, fines, penalties or liabilities, in law or equity, of every kind or nature whatsoever, arising out of, resulting from, or on account of the violation of any governmental law or regulation, compliance with which is the responsibility of Contractor; 158
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4. Any and all losses, expenses, damages (including damages to the Work itself), attorney’s fees, and other costs, including all costs of defense which any of them may incur with respect to the failure, neglect, or refusal of Contractor to faithfully perform the Work and all of Contractor’s obligations under Contract. Such costs, expenses, and damages shall include all costs, including attorney’s fees, incurred by the indemnified parties in any lawsuit to which they are a party.

B. Contractor shall immediately defend, at Contractor’s own cost, expense and risk, with the counsel of the City choosing, any and all such aforesaid suits, actions or other legal proceedings of every kind that may be brought or instituted against the City, its officials, officers, agents, employees and representatives. Contractor shall pay and satisfy any judgment, award or decree that may be rendered against the City, its officials, officers, employees, agents, employees and representatives, in any such suit, action or other legal proceeding. Contractor shall reimburse the City, its officials, officers, agents, employees and representatives for any and all legal expenses and costs incurred by each of them in connection therewith or in enforcing the indemnity herein provided. The only limitations on this provision shall be those imposed by Civil Code section 2782.

C. The provisions of this Article shall survive the termination of this Contract howsoever caused, and no payment, partial payment, or acceptance of occupancy in whole or part of the Work shall waive or release any of the provisions of this Article.

4.2 Insurance
The Contractor shall obtain, and at all times during performance of the Work of Contract, maintain all of the insurance described in this Article. Contractor shall not commence Work under this Contract until it has provided evidence satisfactory to the City that it has secured all insurance required hereunder. 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 Article. Failure to provide and maintain all required insurance shall be grounds for the City to terminate this Contract for cause. Contractor shall furnish the City with original certificates of insurance and endorsements effective coverage required by this Contract on forms satisfactory to the City. The certificates and endorsements for each insurance policy shall be signed by a person authorized by that insurer to bind coverage on its behalf, and shall be on forms acceptable to the City. All certificates and endorsements must be received and approved by the City before Work commences.

A. Additional Insureds; Waiver of Subrogation. The City, its officials, officers, employees, agents and authorized volunteers shall be named as Additional Insureds on Contractor’s All Risk policy and on Contractor’s and its subcontractors’ policies of Commercial General Liability and Automobile Liability insurance using, for Contractor’s policy/ies of Commercial General Liability insurance, ISO CG forms 20 10 and 20 37 (or endorsements providing the exact same coverage, including completed operations), and, for subcontractors’ policies of Commercial General Liability insurance, ISO CG form 20 38 (or endorsements providing the exact same coverage). Notwithstanding the minimum limits set forth in this Contract for any type of insurance coverage, all available insurance proceeds in excess of the specified minimum limits of coverage shall be available to the parties required to be named as Additional Insureds hereunder. All insurance coverage maintained or procured 159
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pursuant to this Contract shall be endorsed to waive subrogation against the City, its officers, officials, agents, employees or volunteers or shall specifically allow Contractor - or others providing insurance evidence in compliance with these specifications - to waive their right of recovery prior to a loss. Contractor hereby waives its own right of recovery against the City, and shall require similar written express waivers and insurance clauses from each of its subcontractors. Copies of these waivers shall be submitted to the City prior to commencement of work.

B. Workers’ Compensation Insurance. The Contractor shall provide workers’ compensation insurance for all of the employees engaged in Work under this Contract, on or at the Site, and, in case of any sublet Work, the Contractor shall require the subcontractor similarly to provide workers’ compensation insurance for all the latter’s employees as prescribed by State law. Any class of employee or employees not covered by a subcontractor’s insurance shall be covered by the Contractor’s insurance. In case any class of employees engaged in work under this Contract, on or at the Site, is not protected under the Workers’ Compensation Statutes, the Contractor shall provide or shall cause a subcontractor to provide, adequate insurance coverage for the protection of such employees not otherwise protected. The Contractor is required to secure payment of compensation to his employees in accordance with the provisions of section 3700 of the Labor Code.

The Contractor shall file with the City certificates of his insurance protecting workers.

Company or companies providing insurance coverage shall be acceptable to the City, if in the form and coverage as set forth in the Contract Documents.

C. Employer’s Liability Insurance. Contractor shall provide Employer’s Liability Insurance, including Occupational Disease, in the amount of at least one million dollars ($1,000,000.00) per person per accident. Contractor shall provide the City with a certificate of Employer’s Liability Insurance. Such insurance shall comply with the provisions of the Contract Documents. The policy shall be endorsed, if applicable, to provide a Borrowed Servant/Alternate Employer Endorsement and contain a Waiver of Subrogation in favor of the City.

D. Commercial General Liability Insurance. Contractor shall provide “occurrence” form Commercial General Liability insurance coverage at least as broad as the most current ISO CGL Form 00 01, including but not limited to, premises liability, contractual liability, products/completed operations, personal and advertising injury which may arise from or out of Contractor’s operations, use, and management of the Site, or the performance of its obligations hereunder. The policy shall not contain any exclusion contrary to this Contract including but not limited to endorsements or provisions limiting coverage for (1) contractual liability (including but not limited to ISO CG 24 26 or 21 39); or (2) cross-liability for claims or suits against one insured against another. Policy limits shall not be less than $5,000,000 per occurrence for bodily injury, personal injury and property damage If Commercial General Liability Insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit. Defense costs shall be paid in addition to the limits.

1. Such policy shall comply with all the requirements of this Article. The limits set forth herein shall apply separately to each insured against whom claims are made or 160
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suits are brought, except with respect to the limits of liability. Further the limits set forth herein shall not be construed to relieve the Contractor from liability in excess of such coverage, nor shall it limit Contractor’s indemnification obligations to the City, and shall not preclude the City from taking such other actions available to the City under other provisions of the Contract Documents or law.

2. All general liability policies provided pursuant to the provisions of this Article shall comply with the provisions of the Contract Documents.

3. All general liability policies shall be written to apply to all bodily injury, including death, property damage, personal injury, owned and non-owned equipment, blanket contractual liability, completed operations liability, explosion, collapse, under-ground excavation, removal of lateral support, and other covered loss, however occasioned, occurring during the policy term, and shall specifically insure the performance by Contractor of that part of the indemnification contained in these General Conditions relating to liability for injury to or death of persons and damage to property.

4. If the coverage contains one or more aggregate limits, a minimum of 50% of any such aggregate limit must remain available at all times; if over 50% of any aggregate limit has been paid or reserved, the City may require additional coverage to be purchased by Contractor to restore the required limits. Contractor may combine primary, umbrella, and as broad as possible excess liability coverage to achieve the total limits indicated above. Any umbrella or excess liability policy shall include the additional insured endorsement described in the Contract Documents.

5. All policies of general liability insurance shall permit and Contractor does hereby waive any right of subrogation which any insurer of Contractor may acquire from Contractor by virtue of the payment of any loss.

E. Automobile Liability Insurance. Contractor shall provide Automobile Liability Insurance at least as broad as ISO CA 00 01 (Any Auto) in the amount of, at least, two million dollars ($2,000,000) per accident for bodily injury and property damage.

Such insurance shall provide coverage with respect to the ownership, operation, maintenance, use, loading or unloading of any auto owned, leased, hired or borrowed by Contractor or for which Contractor is responsible, in a form and with insurance companies acceptable to the City. All policies of automobile insurance shall permit and Contractor does hereby waive any right of subrogation which any insurer of Contractor may acquire from Contractor by virtue of the payment of any loss.

F. Builder’s Risk [“All Risk”]

1. It is the Contractor’s responsibility to maintain or cause to be maintained Builder’s Risk [“All Risk”] extended coverage insurance on all work, material, equipment, appliances, tools, and structures that are or will become part of the Work and subject to loss or damage by fire, and vandalism and malicious mischief, in an amount to cover 100% of the replacement cost. The City accepts no responsibility for the Work until the Work is formally accepted by the City. The Contractor shall 161
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provide a certificate evidencing this coverage before commencing performance of the Work.

2. The named insureds shall be Contractor, all Subcontractors of any tier (excluding those solely responsible for design work), suppliers, and the City, its elected officials, officers, employees, agents and authorized volunteers, as their interests may appear. Contractor shall not be required to maintain property insurance for any portion of the Work following acceptance by the City.

3. Policy shall be provided for replacement value on an “all risk” basis. There shall be no coinsurance penalty provision in any such policy. Policy must include: (1) coverage for any ensuing loss from faulty workmanship, nonconforming work, omission or deficiency in design or specifications; (2) coverage against machinery accidents and operational testing; (3) coverage for removal of debris, and insuring the buildings, structures, machinery, equipment, materials, facilities, fixtures and all other properties constituting a part of the Project; (4) transit coverage, including ocean marine coverage (unless insured by the supplier), with sub-limits sufficient to insure the full replacement value of any key equipment item; and (5) coverage with sub-limits sufficient to insure the full replacement value of any property or equipment stored either on or off the Site. Such insurance shall be on a form acceptable to the City to ensure adequacy and sublimit.

4. In addition, the policy shall meet the following requirements:
a. Insurance policies shall be so conditioned as to cover the performance of any extra work performed under the Contract.
b. Coverage shall include all materials stored on site and in transit. c. Coverage shall include Contractor’s tools and equipment. d. Insurance shall include boiler, machinery and material hoist coverage.

G. Form and Proof of Carriage of Insurance

1. Any insurance carrier providing insurance coverage required by the Contract Documents shall be admitted to and authorized to do business in the State of California unless waived, in writing, by the City’s Risk Manager. Carrier(s) shall have an A.M. Best rating of not less than an A:VII. Insurance deductibles or selfinsured retentions must be declared by the Contractor. At the election of the City the Contractor shall either 1) reduce or eliminate such deductibles or self-insured retentions, or 2) procure a bond which guarantees payment of losses and related investigations, claims administration, and defense costs and expenses. If umbrella or excess liability coverage is used to meet any required limit(s) specified herein, the Contractor shall provide a “follow form” endorsement satisfactory to the City indicating that such coverage is subject to the same terms and conditions as the underlying liability policy.
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2. Each insurance policy required by this Contract shall be endorsed to state that: (1) coverage shall not be suspended, voided, reduced or cancelled except after thirty (30) days prior written notice by certified mail, return receipt requested, has been given to the City; and (2) any failure to comply with reporting or other provisions of the policies, including breaches of warranties, shall not affect coverage provided to the City, its officials, officers, agents, employees, and volunteers.

3. The Certificates(s) and policies of insurance shall contain or shall be endorsed to contain the covenant of the insurance carrier(s) that it shall provide no less than thirty (30) days written notice be given to the City prior to any material modification or cancellation of such insurance. In the event of a material modification or cancellation of coverage, the City may terminate the Contract or stop the Work in accordance with the Contract Documents, unless the City receives, prior to such effective date, another properly executed original Certificate of Insurance and original copies of endorsements or certified original policies, including all endorsements and attachments thereto evidencing coverage’s set forth herein and the insurance required herein is in full force and effect. Contractor shall not take possession, or use the Site, or commence operations under this Contract until the City has been furnished original Certificate(s) of Insurance and certified original copies of endorsements or policies of insurance including all endorsements and any and all other attachments as required in this Article. The original endorsements for each policy and the Certificate of Insurance shall be signed by an individual authorized by the insurance carrier to do so on its behalf.

4. The Certificate(s) of Insurance, policies and endorsements shall so covenant and shall be construed as primary, and the City’s insurance and/or deductibles and/or self-insured retentions or self-insured programs shall not be construed as contributory.

5. The City reserves the right to adjust the monetary limits and types of insurance coverages during the term of this Contract including any extension thereof if, in the City’s reasonable judgment, the amount or type of insurance carried by the Contractor becomes inadequate.

6. Contractor shall report to the City, in addition to the Contractor’s insurer, any and all insurance claims submitted by the Contractor in connection with the Work under this Contract.

7. Products/completed operations coverage shall extend a minimum of three years after the project completion. Coverage shall be included on behalf of the insured for covered claims arising out of the actions of independent contractors. If the insured is using subcontractors, the policy must include work performed “by or on behalf” of the insured. Policy shall contain no language that would invalidate or remove the insurer’s duty to defend or indemnify for claims or suits expressly excluded from coverage. Policy shall specifically provide for a duty to defend on the part of the insurer. The City, its officers, officials, agents employees, and volunteers shall be included as insureds under the policy. 163
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ARTICLE 5 -CONTRACTOR RESPONSIBILITIES; REGULATORY REQUIREMENTS

5.1 Applicable Laws
A. Contractor shall give all notices required by and shall comply with all Applicable Laws applicable to the performance of the Work. Except where otherwise expressly required by Applicable Laws, neither the City nor the City’s Representative shall be responsible for monitoring Contractor’s compliance with any Applicable Laws. If Contractor performs any Work knowing or having reason to know that it is contrary to Applicable Laws, Contractor shall bear all claims, costs, losses, and damages (including but not limited to all fees and charges of engineers, architects, attorneys, and other professionals and all court or arbitration or other dispute resolution costs) arising out of or relating to such Work.

5.2 Permits and Licenses
A. Permits and licenses necessary for prosecution of the Work shall be secured and paid for by Contractor, including, but not limited to, excavation permit, for plumbing, mechanical and electrical work and for operations in or over public streets or right of way under jurisdiction of public agencies other than the City, unless otherwise specified in the Contract Documents.

B. The Contractor shall arrange and pay for all off-site inspection of the Work related to permits and licenses, including certification, required by the specifications, drawings, or by governing authorities, except for such off-site inspections delineated as the City’s responsibility pursuant to the Contract Documents.

C. Before acceptance of the Work, the Contractor shall submit all licenses, permits, certificates of inspection and required approvals to the City.

5.3 Taxes
A. Contractor shall pay all sales, consumer, use, and other similar taxes required to be paid in accordance with the Applicable Laws of the place of the Project which are applicable during the performance of the Work. In accordance with Revenue and Taxation Code section 107.6, the Contract Documents may create a possessory interest subject to personal property taxation for which Contractor will be responsible.

5.4 Traffic Control
A. Traffic control plans, if required, shall be prepared at Contractor’s expense. Traffic control shall be performed at Contractor’s expense in accordance with the requirements of the City and/or the local agency with jurisdiction. Costs for traffic control plans, implementation of traffic control, or traffic signal services required by the City shall be included in the Contractor’s Bid.

B. All warning signs and safety devices used by the Contractor to perform the Work shall conform to the requirements contained in the State of California, Department of Transportation’s current edition of “Manual of Traffic Controls for Construction and Maintenance Work Zones” or to the requirements of the local agency. The Contractor 164
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shall also be responsible for all traffic control required by the agency having jurisdiction over the Project on the intersecting streets. Contractor must submit a traffic control plan to the agency having jurisdiction over the Project for approval prior to starting Work.

C. The Contractor’s representative on the site responsible for traffic control shall produce evidence that he/she has completed training acceptable to the California Department of Transportation for safety through construction zones. All of the streets in which the Work will occur shall remain open to traffic and one lane of traffic maintained at all times unless otherwise directed by the agency of jurisdiction.

Businesses and residences adjacent to the Work shall be notified forty-eight (48) hours in advance of closing of driveways. The Contractor shall make every effort to minimize the amount of public parking temporarily eliminated due to construction in areas fronting businesses. No stockpiles of pipe or other material will be allowed in traveled right-of-ways after working hours unless otherwise approved by the Engineer.

5.5 Safety
A. Contractor shall be solely responsible for all safety precautions and programs in connection with the Work. Such responsibility does not relieve Subcontractors of their responsibility for the safety of persons or property in the performance of their work, nor for compliance with applicable safety laws. Contractor shall comply with all Applicable Laws relating to the safety of persons or property, or to the protection of persons or property from damage, injury, or loss; and shall erect and maintain all necessary safeguards for such safety and protection. Contractor shall notify owners of adjacent property and of Underground Facilities and other utility owners when prosecution of the Work may affect them, and shall cooperate with them in the protection, removal, relocation, and replacement of their property.

B. The Contractor shall maintain emergency first aid treatment for his employees which complies with the Federal Occupational Safety and Health Act of 1970 (29 U.S.C. § 651 et seq.), and California Code of Regulations, Title 8, Industrial Relations Division 1, Department of Industrial Relations, Chapter 4. The Contractor shall ensure the availability of emergency medical services for its employees in accordance with California Code of Regulations, Title 8, Section 1512. The Contractor shall submit an Illness and Injury Prevention Program and a Project Site specific safety program to the City prior to beginning Work. Contractor shall maintain a confined space program that meets or exceeds the City’s standards. Contractor needs to make themselves aware of the City’s safety policies and procedures, and shall meet or exceed all City standards in areas where the City must enter to perform inspections.

C. Hazard Communication Programs. Contractor shall be responsible for coordinating any exchange of material safety data sheets or other hazard communication information required to be made available to or exchanged between or among employers at the Site in accordance with Applicable Laws. 165
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5.6 Hazardous Materials
A. The City shall not be responsible for any Hazardous Waste brought to the site by the Contractor. If the Contractor: (i) introduces and/or discharges a Hazardous Waste onto the site in a manner not specified by the Contract Documents; and/or (ii) disturbs a Hazardous Material identified in the Contract Documents, the Contractor shall hire a qualified remediation contractor at Contractor’s sole cost to eliminate the condition as soon as possible. Under no circumstance shall the Contractor perform Work for which it is not qualified. The City, in its sole discretion, may require the Contractor to retain at Contractor’s cost an independent testing laboratory.

B. If the Contractor encounters a Hazardous Waste which may cause foreseeable injury or damage, Contractor shall immediately: (i) secure or otherwise isolate such condition; (ii) stop all Work in connection with such material or substance (except in an emergency situation); and (iii) notify the City (and promptly thereafter confirm such notice in writing).

C. Subject to Contractor’s compliance with this Article 5.6(B), the City shall verify the presence or absence of the Hazardous Waste reported by the Contractor, except as qualified under Article 5.6(A) and Article 5.6(B) in the event such material or substance is found to be present, verify that the levels of the hazardous material are below OSHA Permissible Exposure Levels and below levels which would classify the material as a state of California or federal hazardous waste. When the material falls below such levels, Work in the affected area shall resume upon direction by the City.

D. Contractor shall indemnify and hold harmless the City from and against claims, damages, losses and expenses, arising from a Hazardous Waste on the Project Site, if such Hazardous Waste exceeded OSHA Permissible Exposure Levels or levels which would classify the material as a state of California or federal hazardous waste, and was either i) shown on the Contract Documents or information available to bidders; or (ii) brought to the site by Contractor. Nothing in this paragraph shall obligate the Contractor to indemnify the City in the event of the sole or active negligence or willful misconduct of the City, its officers, agents, or employees.

5.7 Sanitary Facilities.

A. Contractor shall provide sanitary temporary toilet buildings and hand washing facilities for the use of all workers. All toilets and hand washing facilities shall comply with local codes and ordinances. Toilets shall be placed inside sealed secondary containment devices installed on a flat, level surface. Accumulated liquids in the secondary containment devices shall be properly removed and legally disposed without spillage onto the ground. Toilets shall be kept supplied with toilet paper and shall have workable door fasteners. Toilets and hand washing facilities shall be serviced no less than once weekly and shall be present in a quantity of not less than 1 per 20 workers as required by Cal/OSHA regulations. The toilets and hand washing facilities shall be maintained in a sanitary condition at all times. Use of toilet and hand washing facilities in the Work under construction shall not be permitted.

Any other sanitary facilities required by Cal/OSHA shall be the responsibility of the Contractor.
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5.8 Dust Control
A. Contractor, at its expense, shall maintain all excavations, embankments, haul roads, permanent access roads, plant sites, waste disposal areas, borrow areas, and all other work areas free from dust. Industry accepted methods of dust control suitable for the area involved, such as sprinkling, chemical treatment, light bituminous treatment or similar methods, will be permitted.

5.9 Air Pollution Control
A. Contractor shall comply with all air pollution control rules, regulations, ordinances and statutes. All containers of paint, thinner, curing compound, solvent or liquid asphalt shall be labeled to indicate that the contents fully comply with the applicable material requirements.

B. Without limiting the foregoing, Contractor must fully comply with all applicable laws, rules and regulations in furnishing or using equipment and/or providing services, including, but not limited to, emissions limits and permitting requirements imposed by the Air Quality Management District with jurisdiction over the Project and/or California Air Resources Board (CARB). Contractor shall specifically be aware of the application of these limits and requirements to "portable equipment", which definition includes any item of equipment with a fuel-powered engine. Contractor shall indemnify the City against any fines or penalties imposed by the air quality management district, CARB, or any other governmental or regulatory agency for its violations of Applicable Laws as well as those of its subcontractors or others for whom Contractor is responsible under its indemnity obligations provided for in the Contract Documents.

5.10 Water Quality Management and Compliance
A. Storm, surface, ground, nuisance, or other waters may be encountered at various times during construction of the Work. The Contractor hereby acknowledges that it has investigated the risk arising from such waters, has prepared its Bid accordingly, and assumes any and all risks and liabilities arising therefrom.

B. Contractor shall keep itself and all subcontractors, staff, and employees fully informed of and in compliance with all local, state and federal laws, rules and regulations that may impact, or be implicated by the performance of the Work including, without limitation, all applicable provisions regulating discharges of storm water; the Federal Water Pollution Control Act (33 U.S.C. § 13000 et seq.); the California Porter-Cologne Water Quality Control Act (Cal Water Code §§ 13000- 14950); and any and all regulations, policies, or permits issued pursuant to any such authority. These include, but are not limited to California State Water Resources Control Board Order Number 2009-0009-DWQ (NPDES Permit No. CAS000002), as amended by Order Numbers 2010-0014-DWQ, 2012-0006-DWQ, and any subsequent amendment to or renewal thereof, State Water Resources Control Board Order No. 2013-0001-DWQ (NPDES Order No. CAS000004), Santa Ana Regional Water Quality Control Board No. R8-2010-0036 (NPDES No. CAS618036), and any amendment or renewal thereof.
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C. Contractor shall comply with all conditions of the State Water Resources Control Board (“State Water Board”) National Pollutant Discharge Elimination System General Permit for Waste Discharge Requirements for Discharges of Storm Water Runoff Associated with Construction Activity (“Construction General Permit”) for all construction activity which results in the disturbance of in excess of one acre of total land area or which is part of a larger common area of development or sale.

Contractor shall comply with the lawful requirements of the City, and any other applicable municipality, drainage district, or other local agency with jurisdiction over the location where the Work is to be conducted, regarding discharges of storm water to separate storm drain systems or other watercourses under their jurisdiction, including applicable requirements in municipal storm water management programs.

D. Unless otherwise specified in the Special Conditions or other portion of the Contract Documents, the City has not prepared a Storm Water Pollution Prevention Plan (“SWPPP”) or other storm water compliance plan for the Project Site. Contractor shall be responsible for filing the Notice of Intent (“NOI”) and for obtaining coverage under the Construction General Permit. This includes filing all necessary documentation including the Permit Registration Documents (“PRDs”) through the Stormwater Multiple Applications and Report Tracking System (“SMARTS”); preparing and implementing a SWPPP for the Work site; implementing all other provisions, and monitoring and reporting requirements required by the Construction General Permit; and providing a Qualified SWPPP Developer (“QSD”) and Qualified SWPPP Practitioner (“QSP”), as necessary for all Work site activities, including but not limited to preparation and submittal of all reports, plans, inspections, and monitoring information in compliance with the Construction General Permit. All submittals shall be coordinated with the City’s Legally Responsible Person and Authorized Signatory as those terms are defined in the Construction General Permit.

Before any NOI, PRD, SWPPP, or other Construction General Permit-related document may be submitted to the State Water Board or implemented on the Project site, it must first be reviewed and approved by the City and/or City’s designee.

Contractor shall include all costs of compliance with specified requirements in the Contract Price.

E. The City retains the right to develop its own documentation for the Project site, including but not limited to the SWPPP, and in the alternative may require Contractor to adopt and implement portions of the City developed SWPPP. The City expressly reserves the right to procure coverage under the Construction General Permit for the Work site if Contractor fails to draft satisfactory PRDs or SWPPP or otherwise fails to proceed in a manner that complies with the requirements of the Construction General Permit. The City additionally reserves the right to hire additional contractors to maintain compliance at the Work site. Whether Contractor has adequately maintained compliance with the Construction General Permit shall be the City’s sole determination. Any costs incurred by the City in procuring coverage under the Construction General Permit, or drafting and/or implementing a SWPPP for the Work site shall be paid by Contractor.

F. Notwithstanding the above, for those Work sites where construction activity results in the disturbance of less than one acre of total land area and/or do not need coverage under the Construction General Permit, the Contractor shall be responsible for preparing and implementing an Erosion and Sediment Control Plan 168
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in accordance with State Water Resources Control Board Order No. 2013-0001- DWQ (NPDES Order No. CAS000004) and any amendment to or renewal thereof.

G. Failure to comply with the Construction General Permit, laws, regulations, and ordinances listed in this Article is a violation of federal and state law.

Notwithstanding any other indemnity contained in these Contract Documents, Contractor agrees to indemnify and hold harmless the City, its officials, officers, agents, employees and authorized volunteers from and against any and all claims, demands, fees, costs, expenses, or losses or liabilities of any kind or nature which the City, its officials, officers, agents, employees and authorized volunteers may sustain or incur for noncompliance with the Permit, laws, regulations, and ordinances listed above, arising out of or in connection with the Work, except for liability resulting from the sole established negligence, willful misconduct or active negligence of the City, its officials, officers, agents, employees or authorized volunteers.

H. The City reserves the right to defend any enforcement action or civil action brought against the City for Contractor’s failure to comply with any applicable water quality law, regulation, or policy. Contractor hereby agrees to be bound by, and to reimburse the City for the costs associated with, any settlement reached between the City and any relevant enforcement entity.

5.11 Environmental Quality Protection
A. The Contractor shall comply with all requirements of applicable federal, state, and local environmental rules and regulations. Any infractions of said rules and regulations by the Contractor during the term of the Contract, which result in penalties, will be the responsibility of the Contractor. The City operates under a number of environmental permits issued by various agencies. If due to an action, inaction, or negligence by the Contractor, the City becomes subject to noncompliance penalties, the cost of such penalties shall be borne by the Contractor.

B. The Contractor shall exercise care to preserve the natural landscape and vegetation, and shall conduct operations so as to prevent unnecessary destruction, scarring, or defacing of the natural surroundings in the vicinity of the Work.

Movement of crews and equipment within the rights-of-way and over routes provided for access to the Work shall be performed in a manner to prevent damage to property. When no longer required, construction roads shall be restored to original contours. Upon completion of the Work, and following removal of construction facilities and required cleanup, land used for construction purposes and not required for the completed installation shall be scarified and regraded, as required, so that all surfaces are left in a condition that will facilitate natural revegetation, provide for proper drainage, and prevent erosion.

C. If, in the performance of the Work, evidence of the possible occurrence of any Federally listed threatened or endangered plant or animal is discovered, the Contractor shall notify the City Representative immediately, giving the location and nature of the findings. Written confirmation of the evidence, location and nature of the findings shall be forwarded to City within two (2) Days. The Contractor shall immediately cease all construction activities in the immediate area of the discovery to the extent necessary to protect the endangered plant or animal. If directed by the 169
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City Representative, Contractor will refrain from working in the immediate area, suspend the Work in its entirety, or alter its performance to ensure full compliance with all applicable permits, laws and regulations. Any City directed changes to the Work as a result of a siting will be pursuant to the Contract Documents. Any costs or delays incurred by City or the Contractor due to unreasonable or false notification of an endangered plant or animal will be borne by the Contractor.

D. If, in the performance of the Work, Contractor should unearth cultural resources (for example, human remains, animal bones, stone tools, artifacts and/or midden deposits) through excavation, grading, watering or other means, the Contractor shall notify the construction/archeological monitor and/or the City Representative immediately, giving the location and nature of the findings. Written confirmation of the evidence, location and nature of the findings shall be forwarded to the construction/archeological monitor and/or City within two (2) Days. The Contractor shall immediately cease all construction activities in the immediate area of the discovery to the extent necessary to protect the cultural resource. If directed by the City Representative, Contractor will refrain from working in the immediate area, suspend the Work in its entirety, or re-sequence and/or alter its performance to ensure full compliance with all applicable permits, laws and regulations. Should the presence of cultural resources be confirmed, the Contractor will assist the City Representative and the construction/archeological monitor in the preparation and implementation of a data recovery plan. The Contractor shall provide such cooperation and assistance as may be necessary to preserve the cultural resources for removal or other disposition. Any City directed changes to the Work as a result of the cultural resource will be pursuant to the Contract Documents. Should Contractor, without permission, injure, destroy, excavate, appropriate, or remove any cultural resource on or adjacent to the Site, it will be subject to disciplinary action, arrest and penalty under applicable law. The Contractor shall be principally responsible for all costs of mitigation and/or restoration of cultural resources related to the unauthorized actions identified above. Contractor shall be required to pay for unauthorized damage and mitigation costs to cultural resources (historical and archeological resources) as a result of unauthorized activities that damage cultural resources and shall indemnify City pursuant to the Contract Documents.

5.12 Excessive Noise
A. Contractor shall use only such equipment on the Work and in such state of repair so that the emission of sound therefrom is within the noise tolerance level of that equipment as established by Cal/OSHA. Contractor shall comply with the most restrictive of the following: (1) local sound control and noise level rules, regulations and ordinances and (2) the requirements contained in these Contract Documents, including hours of operation requirements.

B. No internal combustion engine shall be operated on the Project without a muffler of the type recommended by the manufacturer. Should any muffler or other control device sustain damage or be determined to be ineffective or defective, the Contractor shall promptly remove the equipment and shall not return said equipment to the job until the device is repaired or replaced. Said noise and vibration level requirements shall apply to all equipment on the job or related to the job, including 170
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but not limited to, trucks, transit mixers or transit equipment that may or may not be owned by the Contractor.

5.13 Diversion of Recyclable Waste Material
A. In compliance with the applicable City’s waste reduction and recycling efforts, Contractor shall divert all Recyclable Waste Materials to appropriate recycling centers as required for compliance with the local jurisdiction’s waste diversion ordinances. Contractor will be required to submit weight tickets and written proof of diversion with its monthly progress payment requests. Contractor shall complete and execute any certification forms required by the City or other applicable agencies to document Contractor’s compliance with these diversion requirements. All costs incurred for these waste diversion efforts shall be the responsibility of the Contractor.

5.14 Inspector’s Field Office.

A. If required by the City, the Contractor shall be responsible for providing the inspector’s field office. The office shall be a substantial waterproof construction with adequate natural light and ventilation by means of stock design windows. Door shall have a key type lock or padlock clasp. The office shall have heating and air conditioning and shall be equipped with a telephone, a telephone answering machine, an ability to connect to the internet, and a fax machine at Contractor’s expense. The field office shall be provided within 20 Days of the Notice to Proceed.

B. A table satisfactory for the study of plans and two chairs shall be provided by Contractor. Contractor shall provide and pay for adequate electric lights, local telephone service, and adequate heat and air conditioning for the field office until authorized removal.

5.15 Contractor’s Supervision.

A. Contractor shall continuously keep at the Project site, a competent and experienced full-time Project superintendent acceptable to the City. Superintendent must be able to proficiently speak, read and write in English and shall have the authority to make decisions on behalf of the Contractor. Contractor shall continuously provide efficient supervision of the Project.

5.16 Workers.

A. Contractor shall at all times enforce strict discipline and good order among its employees. Contractor shall not employ on the Project any unfit person or any one not skilled in the Work assigned to him or her.

B. Any person in the employ of the Contractor whom the City may deem incompetent or unfit shall be dismissed from the Work and shall not be employed on this Project.

5.17 Independent Contractors.

A. Contractor shall be an independent contractor for the City and not an employee.

Contractor understands and agrees that it and all of its employees shall not be considered officers, employees, or agents of the City and are not entitled to benefits 171
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of any kind normally provided employees of the City, including but not limited to, state unemployment compensation or workers’ compensation. Contractor assumes full responsibility for the acts and omissions of its employees or agents related to the Work.

5.18 Verification of Employment Eligibility.

A. By executing the Contract, Contractor verifies that it fully complies with all requirements and restrictions of state and federal law respecting the employment of undocumented aliens, including, but not limited to, the Immigration Reform and Control Act of 1986, as may be amended from time to time, and shall require all subcontractors, sub-subcontractors and consultants to comply with the same. Each person executing this Contract on behalf of Contractor verifies that he or she is a duly authorized officer of Contractor and that any of the following shall be grounds for the City to terminate the Contract for cause: (1) failure of the Contractor or its Subcontractors, sub-subcontractors or consultants to meet any of the requirements provided for in this Article; (2) any misrepresentation or material omission concerning compliance with such requirements; or (3) failure to immediately remove from the Work any person found not to be in compliance with such requirements.

5.19 Labor.

A. Hours of Work

1. As provided in Article 3 (commencing at section 1810), Chapter 1, Part 7, Division 2 of the Labor Code, Contractor stipulates that eight (8) hours of labor shall constitute a legal day’s work. The time of service of any worker employed at any time by the Contractor or by any subcontractor on any subcontract under this Contract upon the Work or upon any part of the Work contemplated by this Contract is limited and restricted to eight (8) hours during any one calendar day and 40 hours during any one calendar week, except as hereinafter provided.

Notwithstanding the provisions herein above set forth, work performed by employees of Contractor in excess of eight (8) hours per day, and 40 hours during any one week, shall be permitted upon this public work upon compensation for all hours worked in excess of eight (8) hours per day at not less than one and onehalf times the basic rate of pay.

2. The Contractor and every Subcontractor shall keep an accurate record showing the name of and actual hours worked each calendar day and each calendar week by each worker employed in connection with the Work or any part of the Work contemplated by this Contract. The record shall be kept open at all reasonable hours to the inspection of the City and to the Division of Labor Law Enforcement, Department of Industrial Relations of the State of California.

3. The Contractor shall pay to the City a penalty of twenty-five dollars ($25.00) for each worker employed in the execution of this Contract by the Contractor or by any subcontractor for each calendar day during which such worker is required or permitted to work more than eight (8) hours in any calendar day and 40 hours in any one calendar week in violation of the provisions of Article 3 (commencing at section 1810), Chapter 1, Part 7, Division 2 of the Labor Code. 172
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4. Any work necessary to be performed after regular working hours, or on Saturdays and Sundays or other holidays, shall be performed without additional expense to the City.

5. If Contractor gives notice of an inspection pursuant to the Contract Documents, the City will provide inspection during normal working hours from 7:00 a.m. to 3:30 p.m. Monday through Friday. Requested inspections before or after this time will be charged to the Contractor as reimbursable inspection time. Inspections on weekends requires two (2) Days’ notice for review and approval. Upon written request and approval the 8.5 hour working day may be changed to other limits subject to city/county ordinance.

6. It shall be unlawful for any person to operate, permit, use, or cause to operate any of the following at the Project Site, other than between the hours of 7:00 a.m. to 5:00 p.m., Monday through Friday, with no Work allowed on City-observed Holidays, unless otherwise approved by the City:
a. Powered Vehicles
b. Construction Equipment
c. Loading and Unloading Vehicles
d. Domestic Power Tools
B. Payroll Records; Labor Compliance

1. Pursuant to Labor Code section 1776, Contractor and all subcontractors shall maintain weekly certified payroll records, showing the names, addresses, Social Security numbers, work classifications, straight time and overtime hours worked each day and week, and the actual per diem wages paid to each journeyman, apprentice, worker, or other employee employed by them in connection with the Work under this Contract. Contractor shall certify under penalty of perjury that records maintained and submitted by Contractor are true and accurate. Contractor shall also require Subcontractor(s) to certify weekly payroll records under penalty of perjury.

2. In accordance with Labor Code section 1771.4, the Contractor and each Subcontractor shall furnish the certified payroll records directly to the Department of Industrial Relations (“DIR”) on the specified interval and format prescribed by the DIR, which may include electronic submission. Contractor shall comply with all requirements and regulations from the DIR relating to labor compliance monitoring and enforcement. The requirement to submit certified payroll records directly to the Labor Commissioner under Labor Code section 1771.4 shall not apply to work performed on a public works project that is exempt pursuant to the small project exemption specified in Labor Code Section 1771.4.

3. Any stop orders issued by the DIR against Contractor or any Subcontractor that affect Contractor’s performance of Work, including any delay, shall be Contractor’s sole responsibility. Any delay arising out of or resulting from such stop orders shall be considered Contractor caused delay subject to any applicable liquidated 173
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damages and shall not be compensable by the City. Contractor shall defend, indemnify and hold the City, its officials, officers, employees and agents free and harmless from any claim or liability arising out of stop orders issued by the DIR against Contractor or any Subcontractor.

4. The payroll records described herein shall be certified and submitted by the Contractor at a time designated by the City. The Contractor shall also provide the following:
a. A certified copy of the employee’s payroll records shall be made available for inspection or furnished to such employee or his or her authorized representative on request. b. A certified copy of all payroll records described herein shall be made available for inspection or furnished upon request of the DIR.

5. Unless submitted electronically, the certified payroll records shall be on forms provided by the Division of Labor Standards Enforcement (“DLSE”) of the DIR or shall contain the same information as the forms provided by the DLSE.

6. Any copy of records made available for inspection as copies and furnished upon request to the public or any public agency, the City, the Division of Apprenticeship Standards or the Division of Labor Standards Enforcement shall be marked or obliterated in such a manner as to prevent disclosure of an individual's name, address and social security number. The name and address of the Contractor awarded the Contract or performing the Contract shall not be marked or obliterated.

7. In the event of noncompliance with the requirements of this Article, the Contractor shall have ten (10) Days in which to comply subsequent to receipt of written notice specifying in what respects the Contractor must comply with this Article. Should noncompliance still be evident after such 10-day period, the Contractor shall pay a penalty of one hundred dollars ($100.00) to the City for each calendar day, or portion thereof, for each worker, until strict compliance is effectuated. Upon the request of the Division of Apprenticeship Standards or the Division of Labor Standards Enforcement, such penalties shall be withheld from progress payment then due.

8. The responsibility for compliance with this Article shall rest upon the Contractor.

C. Prevailing Rates of Wages

1. The Contractor is aware of the requirements of Labor Code sections 1720 et seq. and 1770 et seq., as well as California Code of Regulations, Title 8, Section 16000 et seq. (“Prevailing Wage Laws”), which require the payment of prevailing wage rates and the performance of other requirements on certain “public works” and “maintenance” projects. Since this Project involves an applicable “public works” or “maintenance” project, as defined by the Prevailing Wage Laws, and since the total compensation is $1,000 or more, Contractor agrees to fully comply with such Prevailing Wage Laws. The Contractor shall obtain a copy of the prevailing rates of per diem wages at the commencement of this Contract from the website of the 174
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Division of Labor Statistics and Research of the Department of Industrial Relations located at www.dir.ca.gov. In the alternative, the Contractor may view a copy of the prevailing rate of per diem wages which are on file at the City’s Administration Office and shall be made available to interested parties upon request. Contractor shall make copies of the prevailing rates of per diem wages for each craft, classification, or type of worker needed to perform work on the Project 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 officials, officers, employees and authorized volunteers free and harmless from any claims, liabilities, costs, penalties or interest arising out of any failure or allege failure to comply with the Prevailing Wage Laws.

2. The Contractor shall forfeit as a penalty to the City not more than Two Hundred Dollars ($200.00), pursuant to Labor Code section 1775, for each calendar day, or portion thereof, for each worker paid less than the prevailing wage rate as determined by the Director of the DIR for such work or craft in which such worker is employed for any public work done under the Contract by it or by any Subcontractor under it. The difference between such prevailing wage rate and the amount paid to each worker for each calendar day or portion thereof, for which each worker was paid less than the prevailing wage rate, shall be paid to each worker by the Contractor.

3. Contractor shall post, at appropriate conspicuous points on the Project Site, a schedule showing all determined general prevailing wage rates and all authorized deductions, if any, from unpaid wages actually earned.

D. Public Works Contractor Registration

1. Pursuant to Labor Code sections 1725.5 and 1771.1, the Contractor and its Subcontractors must be registered with the DIR prior to the execution of a contract to perform public works. By entering into this Contract, Contractor represents that it is aware of the registration requirement and is currently registered with the DIR.

Contractor shall maintain a current registration for the duration of the Project.

Contractor shall further include the requirements of Labor Code sections 1725.5 and 1771.1 in any subcontract and ensure that all Subcontractors are registered at the time this Contract is entered into and maintain registration for the duration of the Project. Notwithstanding the foregoing, the contractor registration requirements mandated by Labor Code Sections 1725.5 and 1771.1 shall not apply to work performed on a public works project that is exempt pursuant to the small project exemption specified in Labor Code Sections 1725.5 and 1771.1.

E. Employment of Apprentices

1. Contractor and all Subcontractors shall comply with the requirements of Labor Code sections 1777.5 and 1777.6 in the employment of apprentices.

2. Information relative to apprenticeship standards, wage schedules, and other requirements may be obtained from the Director of Industrial Relations, ex officio the Administrator of Apprenticeship, San Francisco, California, or from the Division of Apprenticeship Standards and its branch offices.
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3. Knowing violations of Labor Code section 1777.5 will result in forfeiture not to exceed one hundred dollars ($100.00) for each calendar day of non-compliance pursuant to Labor Code section 1777.7.

F. Nondiscrimination/Equal Employment Opportunity

1. Pursuant to Labor Code section 1735 and other applicable provisions of law, the Contractor and its Subcontractors shall not discriminate against any employee or applicant for employment because of race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, marital status, sex, age, sexual orientation, or any other classifications protected by law on this Project. The Contractor will take affirmative action to insure that employees are treated during employment or training without regard to their race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, marital status, sex, age, sexual orientation, or any other classifications protected by law.

G. Debarment of Contractors and Subcontractors

1. Contractors or Subcontractors may not perform work on a public works project with a subcontractor who is ineligible to perform work on a public project pursuant to Labor Code section 1777.1 or 1777.7. Any contract on a public works project entered into between a contractor and a debarred subcontractor is void as a matter of law. A debarred subcontractor may not receive any public money for performing work as a subcontractor on a public works contract. Any public money that is paid, or may have been paid to a debarred subcontractor by a contractor on the project shall be returned to the City. The Contractor shall be responsible for the payment of wages to workers of a debarred subcontractor who has been allowed to work on the Project.

5.20 Subcontracts.

A. Contractor agrees to bind every Subcontractor to the terms of the Contract Documents as far as such terms are applicable to Subcontractor’s portion of the Work. Contractor shall be as fully responsible to the City for the acts and omissions of its subcontractors and of persons either directly or indirectly employed by its subcontractors, as Contractor is for acts and omissions of persons directly employed by Contractor. Nothing contained in these Contract Documents shall create any contractual relationship between any subcontractor and the City.

B. The City reserves the right to accept all subcontractors. The City’s acceptance of any Subcontractor under this Contract shall not in any way relieve Contractor of its obligations in the Contract Documents.

C. Prior to substituting any Subcontractor listed in the Bid Forms, Contractor must comply with the requirements of the Subletting and Subcontracting Fair Practices Act pursuant to California Public Contract Code section 4100 et seq. 176
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5.21 Progress Meetings
A. The Contractor shall schedule and hold regular progress meetings at least weekly and at other times as requested by Engineer or as required by progress of the Work.

The Contractor, City, and all Subcontractors active on the Site shall attend each meeting. Contractor may at its discretion request attendance by representatives of its Suppliers, manufacturers, and other Subcontractors. The City will preside at the progress meetings and will arrange for keeping and distributing the minutes. The purpose of the meetings is to review the progress of the Work, maintain coordination of efforts, discuss changes in scheduling, and resolve other problems which may develop. During each meeting, the Contractor shall present any issues which may impact its progress with a view to resolve these issues expeditiously.

5.22 Submittals
A. Schedule of Submittals. Within five (5) Days after the Notice to Proceed (unless otherwise specified in the Contract Documents), Contractor will prepare and deliver a Schedule of Submittals to the City that has been fully integrated with the progress schedule and identifies each Submittal required by the Contract Documents as well as the date on which Contractor will deliver each Submittal to the City. Each Submittal must be delivered to the City at least thirty (30) Days prior to the date the material or equipment is scheduled to be incorporated into the Work. The Contractor is responsible for any schedule delays resulting from the Submittal process.

B. Submittal Procedures.

1. Contractor will follow the following procedures for each Submittal, Shop Drawing and Sample required by the Contract Documents:
a. Submittals must be transmitted electronically.
b. Transmittals will be sequentially numbered. Contractor to mark revised Submittals with original number and sequential alphabetic suffix. c. Each Submittal will identify the Project, Contractor, Subcontractor and Supplier, pertinent Drawing and detail number, and Specification Section number appropriate to Submittal.
d. By transmitting a Submittal, Contractor certifies it has reviewed and approved each Submittal, verified products required, field dimensions, adjacent construction Work, and that coordination of information is according to requirements of the Work and Contract Documents.
e. Identify variations in Contract Documents and product or system limitations that may differ and/or be detrimental to successful performance of completed Work.
f. When Submittal is revised for resubmission, Contractor shall promptly address the City’s comments and resubmit. Contractor shall identify changes made since previous submission.
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g. The City’s review of Shop Drawings shall not relieve Contractor from responsibility for deviations from the Contract Documents unless Contractor has, in writing, called the City’s attention to such deviations at time of submission and the City has taken no exception to the deviation. The City’s review of Shop Drawings shall not relieve Contractor from responsibility for errors in Shop Drawings.
h. Submittals not required by the Contract Documents or requested by the City will not be acknowledged or processed.
i. Incomplete Submittals will not be reviewed by the City. Delays resulting from incomplete Submittals are not the responsibility of the City. j. Contractor shall not be entitled to any extension of the Contract Times as a result of the Submittal process.
k. Contractor shall allow a minimum of 20 working days for review of Submittals unless otherwise specified in the Contract Documents.

2. Where a Submittal, Shop Drawing or Sample is required by the Contract Documents or the Schedule of Submittals, any related Work performed prior to the City review and approval of the pertinent submittal will be performed at the sole risk and expense and responsibility of Contractor.

C. Schedule Milestone for Submittals. Contractor must submit all Submittals required by the Contract Documents in accordance with the Schedule of Submittals. If Contractor fails to submit the Submittals in accordance with the Schedule of Submittals, Contractor will be solely liable for any delays or impacts caused by the delayed Submittal, whether direct or indirect. Contractor will be liable for the time calculated from the date the Submittal is due until the date a compliant Submittal is made. A compliant Submittal will be one that is complete and satisfies the requirements of the Contract Documents.

5.23 Shop Drawings and Sample Submittal Procedures.

A. Before submitting each Shop Drawing or Sample, Contractor shall have:

1. Reviewed and coordinated each Shop Drawing or Sample with other Shop Drawings and Samples and with the requirements of the Work and the Contract Documents;

2. Determined and verified all field measurements, quantities, dimensions, specified performance and design criteria, installation requirements, materials, catalog numbers, and similar information with respect thereto;

3. Determined and verified the suitability of all materials offered with respect to the indicated application, fabrication, shipping, handling, storage, assembly, and installation pertaining to the performance of the Work; and 178
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4. Determined and verified all information relative to Contractor’s responsibilities for means, methods, techniques, sequences, and procedures of construction, and safety precautions and programs incident thereto.

B. With each Submittal, Contractor shall give the City specific written notice of any variations that the Shop Drawing or Sample may have from the requirements of the Contract Documents. This notice shall be both a written communication separate from the Shop Drawings or Sample Submittal and, in addition, a specific notation made on each Shop Drawing or Sample submitted to the City for review and approval of each such variation.

C. Shop Drawings.

1. Data shown on the Shop Drawings will be complete with respect to quantities, dimensions, specified performance and design criteria, materials, and similar data to show the City the services, materials, and equipment Contractor proposes to provide and to enable the City to review the information for assessing conformance with information given and design concept expressed in Contract Documents.

2. When required by individual Specification sections, provide Shop Drawings signed and sealed by a professional engineer responsible for designing components shown on Shop Drawings. Shop Drawings must include signed and sealed calculations to support design in a form suitable for submission to and approval by authorities having jurisdiction.

3. Shop Drawings for steel structures shall consist of shop details, erection and other working Drawings showing details, dimensions, sizes of members and other information necessary for the complete fabrication and erection of the metal work.

4. Shop Drawings of concrete structures shall consist of such detailed drawings as may reasonably be required for the successful prosecution of the Work and which are not included in the Drawings furnished by the Engineer. These may include drawings for false work, bracing, centering and form work, masonry layout diagrams, and diagrams for bent reinforcement.

5. Contractor shall make revisions and provide additional information when required by authorities having jurisdiction.

D. Samples. Clearly identify each Sample as to material, Supplier, pertinent data such as catalog numbers, the use for which intended and other data as required to enable the City to review the submittal for assessing conformance with information given and design concept expressed in Contract Documents. Samples should be of appropriate size and detail to assess functional, aesthetic, color, texture, patterns and finish selection.

E. City’s Review.

1. The City will review Shop Drawings and Samples in accordance with the Schedule of Submittals. The City’s review and acceptance will be only to determine if the items covered by the Submittals will, after installation or incorporation in the Work, conform to the information given in the Contract Documents and be compatible 179
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with the design concept of the completed Project as a functioning whole as indicated by the Contract Documents.

2. The City review and approval will not extend to means, methods, techniques, sequences, or procedures of construction (except where a particular means, method, technique, sequence, or procedure of construction is specifically and expressly called for by the Contract Documents) or to safety precautions or programs incident thereto. The review and approval of a separate item as such will not indicate approval of the assembly in which the item functions.

3. The City’s review and acceptance shall not relieve Contractor from responsibility for any variation from the requirements of the Contract Documents unless the City has given written approval of each such variation by specific written notation thereof incorporated in or accompanying the Shop Drawing or Sample.

F. Resubmittal Procedures. Contractor shall make corrections required by the City and shall return corrected Shop Drawings and submit, as required, new Samples for review and approval. Contractor shall direct specific attention in writing to revisions other than the corrections called for by the City on previous Submittals.

5.24 Record (“As-Built”) Drawings.

A. The Contractor shall maintain one record set of Contract Documents at the Site or digitally in an acceptable format. On these, it shall mark all Project conditions, locations, configurations, and any other changes or deviations which may vary from the information represented in the original Contract Documents, including buried or concealed construction and utility features which are revealed during the course of construction. Special attention shall be given to recording the horizontal and vertical location of all buried utilities that differ from the locations indicated, or which were not indicated on the Drawings. For all Projects involving the installation of any pipeline, Contractor shall survey and record the top of the pipe at a minimum of every 100 linear feet, and at each bend, recording both the horizontal and vertical locations. Said Drawings shall be supplemented by any detailed sketches as necessary or directed to fully indicate the Work as actually constructed. Any required as-built drawings of civil engineering elements of the Work shall be prepared by a registered civil engineer.

B. These master Record Drawings of the as-built conditions, including all revisions made necessary by Addenda and Change Orders, shall be maintained up-to-date during the progress of the Project. Red ink shall be used for alterations and notes.

Notes shall identify relevant Change Orders by number and date. Record Drawings shall be accessible to the Engineer at all times during the construction period.

Failure on the Contractor’s part to keep Record Drawings current could result in withholding partial payment.

C. Upon completion of the Project and as a condition of final acceptance, the Contractor shall finalize and deliver a complete set of Record Drawings to the Engineers. The information submitted by the Contractor will be assumed to be correct, and the Contractor shall be responsible for, and liable to the City, for the accuracy of such information, and for any errors or omissions which may or may not appear on the Record Drawings.
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D. Unless otherwise called for by the Contract Documents, the cost of all material, equipment, and labor required to complete the Record Drawings shall be included in Contractor’s bid and distributed in the Bid Schedule. No additional compensation shall be made to the Contractor for this Work.

5.25 Layout and Field Engineering.

A. The Contractor shall utilize a properly licensed surveyor to perform all layout surveys required for the control and completion of the Work, and all necessary surveys to compute quantities of Work performed.

5.26 Separate Contracts and Cooperation.

A. Separate Contracts. The City reserves the right to let other contracts in connection with this Work or on the Project site. Contractor shall permit other contractors reasonable access and storage of their materials and execution of their work and shall properly connect and coordinate its Work with theirs. To ensure proper execution of its subsequent Work, Contractor shall immediately inspect work already in place and shall at once report to the Engineer any problems with the Work in place or discrepancies with the Contract Documents.

B. Cooperation. Contractor shall ascertain to its own satisfaction the scope of the Project and nature of any other contracts that have been or may be awarded by the City in prosecution of the Project to the end that Contractor may perform this Contract in the light of such other contracts, if any. Nothing herein contained shall be interpreted as granting to Contractor exclusive occupancy at site of the Project.

Contractor shall not cause any unnecessary hindrance or delay to any other contractor working on the Project. If simultaneous execution of any contract for the Project is likely to cause interference with performance of some other contract or contracts, the Engineer shall decide which Contractor shall cease Work temporarily and which contractor shall continue or whether work can be coordinated so that contractors may proceed simultaneously. The City shall not be responsible for any damages suffered or for extra costs incurred by Contractor resulting directly or indirectly from award, performance, or attempted performance of any other contract or contracts on the Project Site.

5.27 Work Site.

A. Limitation of Use of Site and Other Areas. Rights-of-way, easements, or rights-ofentry for the Work will be provided by the City. Unless otherwise specified in the Special Provisions, the Contractor shall make arrangements, pay for, and assume all responsibility for acquiring, using, and disposing of additional work areas and facilities temporarily required. The Contractor shall indemnify and hold the City harmless from all claims for damages caused by such actions. Contractor shall confine construction equipment, the storage of materials and equipment, and the operations of workers to the Site and other areas permitted by Applicable Laws, and shall not unreasonably encumber the Site and other areas with construction equipment or other materials or equipment. Contractor shall assume full responsibility for any damage to any such land or area, or to City or occupant thereof, or of any adjacent land or areas resulting from the performance of the Work. 181
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B. Site Maintenance. During the progress of the Work, Contractor shall keep the Site and other areas free from accumulations of waste materials, rubbish, and other debris. Removal and disposal of such waste materials, rubbish, and other debris shall conform to Applicable Laws. The Contractor shall furnish trash bins for all debris from construction. All debris shall be placed in trash bins daily. Forms and false-work that are to be re-used shall be stacked neatly concurrently with their removal. Forms and false-work that are not to be re-used shall be disposed of concurrently with their removal.

C. Cleaning. Prior to Completion of the Work, Contractor shall clean the Site and make it ready for utilization by the City. At the completion of the Work Contractor shall remove from the Site all tools, appliances, construction equipment and machinery, and surplus materials and shall restore to original condition all property not designated for alteration by the Contract Documents.

5.28 Utility Usage.

A. All temporary utilities, including but not limited to electricity, water, gas, and telephone, used on the Work shall be furnished and paid for by Contractor.

Contractor shall provide necessary temporary distribution systems, including meters, if necessary, from distribution points to points on the Work where the utility is needed. Upon completion of the Work, Contractor shall remove all temporary distribution systems. Contractor shall provide necessary and adequate utilities and pay all costs for water, electricity, gas, oil, and sewer charges required for completion of the Work, including but not limited to startup and testing required in the Contract Documents. All permanent meters installed shall be listed in the Contractor’s name until the Work is accepted. For Work to be performed in existing City facilities, Contractor may use the City’s existing utilities, provided such use is reasonable under the circumstances. If Contractor uses the City utilities, it will not need to compensate the City for reasonably consumption of utilities, but Contractor will be responsible for any excessive, unreasonable or wasteful utility usage. Amounts due the City under this section may be deducted from progress payments.

5.29 Protection of Work and Property.

A. The Contractor shall digitally record video and take photographs of the Project site and adjacent improvements in a manner and quality that clearly depicts the existing condition of the Project Site and adjacent improvements immediately prior to the start of Work (minimum 1080p video and 4MP photo). All videos and photographs shall be date and time stamped. The Contractor shall submit the video and photos in digital format on a memory stick before the commencement of Work, along with a map outlining the route and locations of the videos and/or photographs. The Contractor shall be responsible for all damages to persons or property that occur as a result of the Work. Contractor shall be responsible for the proper care and protection of all materials delivered and Work performed until completion and final acceptance by the City. All Work shall be solely at the Contractor’s risk.

B. Contractor shall adequately protect adjacent property from settlement or loss of lateral support as necessary. Contractor shall comply with all applicable safety laws and building codes to prevent accidents or injury to persons on, about, or adjacent 182
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to the Project site where Work is being performed. Contractor shall erect and properly maintain at all times, as required by field conditions and progress of work, all necessary safeguards, signs, barriers, lights, and watchmen for protection of workers and the public, and shall post danger signs warning against hazards created in the course of construction.

C. Contractor shall provide such heat, covering, and enclosures as are necessary to protect all Work, materials, equipment, appliances, and tools against damage by weather conditions.

D. Contractor shall take adequate precautions to protect existing sidewalks, curbs, pavements, utilities, and other adjoining property and structures, and to avoid damage thereto, and Contractor shall repair any damage thereto caused by the Work operations. Contractor shall:

1. Enclose the working area with a substantial barricade, and arrange work to cause minimum amount of inconvenience and danger to the public.

2. Provide substantial barricades around any shrubs or trees indicated to be preserved.

3. Deliver materials to the Site over a route designated by the City.

4. Provide any and all dust control required and follow the applicable air quality regulations as appropriate. If the Contractor does not comply immediately with a notice from the City or a public agency responsible for air quality, the City shall have the authority to provide dust control and deduct the cost from payments to the Contractor.

5. Confine Contractor’s apparatus, the storage of materials, and the operations of its workers to limits required by law, ordinances, permits, or directions of the City.

Contractor shall not unreasonably encumber the Site with its materials.

6. Take care to prevent disturbing or covering any survey markers, monuments, or other devices marking property boundaries or corners. If such markers are disturbed by accident, they shall be replaced by a civil engineer or land surveyor acceptable to the City, at no cost to the City.

7. Ensure that existing facilities, fences and other structures are all adequately protected and that, upon completion of all Work, all facilities that may have been damaged are restored to a condition acceptable to the City.

8. Preserve and protect from injury all buildings, pole lines and all directional, warning and mileage signs that have been placed within the right-of-way.

9. At the completion of work each day, leave the Work and the Site in a clean, safe condition.

10. Comply with any stage construction and/or traffic handling plans. Access to residences and businesses shall be maintained at all times, except with the City’s written approval. Any request for approval to reduce or restrict access to 183
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residences and business must be submitted to the City at least seven (7) Days in advance, and the City may issue or withhold approval in its sole discretion.

E. These precautionary measures will apply continuously and not be limited to normal working hours. Full compensation for the work involved in the protection and preservation of life, safety and property as above specified shall be considered as included in the prices paid for the various contract items of Work, and no additional allowance will be made therefor.

F. Should damage to persons or property occur as a result of the Work, Contractor shall promptly notify the City, in writing. Contractor shall be responsible for proper investigation, documentation, including video or photography, to adequately memorialize and make a record of what transpired. The City shall be entitled to inspect and copy any such documentation, video, or photographs.

G. Contractor shall maintain all investigation documentation including video and/or photographs for a minimum of four (4) years following completion of the Project.

5.30 Emergencies.

A. In emergencies affecting the safety or protection of persons or the Work or Property at the Site or adjacent thereto, the Contractor, without special instruction or authorization from the City or the Engineer, is obligated to act to prevent threatened damage, injury or loss. The Contractor shall give the Engineer prompt written notice if the Contractor believes that any significant changes in the Work or variations from the Contract Documents have been caused thereby.

ARTICLE 6 -MATERIALS; INSPECTION

6.1 Access to Work.

A. The City, Engineer, their consultants and other representatives and personnel, independent testing laboratories, and governmental agencies with jurisdictional interests will have access to the Site and the Work at reasonable times for their observation, inspection, and testing. Contractor shall provide them proper and safe conditions for such access and advise them of Contractor’s safety procedures and programs.

6.2 Materials.

A. Except as otherwise specifically stated in the Contract Documents, Contractor shall provide and pay for all materials, labor, tools, equipment, water, lights, power, transportation, superintendence, temporary constructions of every nature, and all other services and facilities whatsoever necessary to execute and complete this Contract within the Contract Time. Unless otherwise specified, all materials, parts, and equipment furnished by the Contractor in the Work shall be new, the best of their respective kinds and grades as noted and/or specified, and workmanship shall be of good quality.

B. No materials, supplies, or equipment for Work under this Contract shall be purchased subject to any chattel mortgage or under a conditional sale or other 184
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agreement by which an interest therein or in any part thereof is retained by the seller or supplier. Contractor warrants good title to all material, supplies, and equipment installed or incorporated in the Work and agrees upon completion of all work to deliver the Project, to the City free from any claims, liens, or charges.

C. Materials shall be furnished in ample quantities and at such times as to ensure uninterrupted progress of the Work and shall be stored properly and protected as required by the Contract Documents. Contractor shall be entirely responsible for damage or loss by weather or other causes to materials or Work. Materials shall be stored on the Project Site in such manner so as not to interfere with any operations of the City or any independent contractor.

D. Contractor shall verify all measurements, dimensions, elevations, and quantities before ordering any materials or performing any Work, and the City shall not be liable for Contractor’s failure to so. Except for an adjustment to Unit Price Work for item overruns and underruns in accordance with the Contract Documents, no additional compensation, over and above payment for the actual quantities at the prices set out in the Bid Schedule, will be allowed because of differences between actual measurements, dimension, elevations and quantities and those indicated on the Plans and in the Specifications. Any difference therein shall be submitted to the Engineer for consideration before proceeding with the Work.

6.3 Test and Inspections.

A. Inspection and Testing of Work and Materials

1. If the Contract Documents, the Engineer, or any instructions, laws, ordinances, or public authority requires any part of the Work to be tested or approved, Contractor shall provide the Engineer at least two (2) working days’ notice of its readiness for observation or inspection. If inspection is by a public authority other than the City, Contractor shall promptly inform the City of the date fixed for such inspection.

Required certificates of inspection (or similar) shall be secured by Contractor.

Costs for City testing and inspection shall be paid by the City. Costs of tests for Work found not to be in compliance shall be paid by the Contractor.

2. The Contractor shall pay for the cost of any minimum “show up” costs of a materials testing technician that was called for by the Contractor but ultimately the Contractor work was not ready for the inspection. Any such costs shall be deducted from any amounts due to the Contractor.

3. If any Work is done or covered up without the required testing or approval, the Contractor shall uncover or deconstruct the Work, and the Work shall be redone after completion of the testing at the Contractor’s cost in compliance with the Contract Documents.

4. Where inspection and testing are to be conducted by an independent laboratory or agency, materials or samples of materials to be inspected or tested shall be selected by such laboratory or agency, or by the City, and not by Contractor.

Unless otherwise stated and as provided by the Contract Documents, the City shall employ and pay for the services of an independent testing laboratory to perform 185
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all inspections, tests, or approvals required by the Contract Documents. All tests or inspections of materials shall be made in accordance with the commonly recognized standards of national organizations.

5. Reexamination of Work may be ordered by the City. If so ordered, Work must be uncovered or deconstructed by Contractor. If Work is found to be in accordance with the Contract Documents, the City shall pay the costs of reexamination and reconstruction. If such work is found not to be in accordance with the Contract Documents, Contractor shall pay all costs.

B. Testing of Materials

1. In advance of manufacture of materials to be supplied by Contractor which must be tested or inspected, Contractor shall notify the City so that the City may arrange for testing at the source of supply. Any materials which have not satisfactorily passed such testing and inspection shall not be incorporated into the Work.

2. If the manufacture of materials to be inspected or tested will occur in a plant or location greater than sixty (60) miles from the City, the Contractor shall pay for any excessive or unusual costs associated with such testing or inspection, including but not limited to excessive travel time, standby time and required lodging.

3. Unless otherwise specified in the Special Provisions, all initial testing and a reasonable amount of retesting will be performed under the direction of the Engineer, and at no expense to the Contractor. The Contractor shall notify the Engineer in writing, at least 15 days in advance, of its intention to use materials for which tests are specified, to allow sufficient time to perform the tests. The notice shall name the proposed supplier and source of material. If the notice of intent to use is sent before the materials are available for testing or inspection, or is sent so far in advance that the materials on hand at the time will not last but will be replaced by a new lot prior to use on the Work, it will be the Contractor's responsibility to renotify the Engineer when samples which are representative may be obtained.

4. A Certificate of Compliance shall be furnished to the Engineer prior to the use of any material or assembled material for which these Specifications so require or if so required by the Engineer. The Engineer may waive the materials testing requirements and accept a Certificate of Compliance. Material test data may be required by the Engineer to be included with the submittal. Materials used on the basis of a Certificate of Compliance may be sampled and tested at any time. The submission of a Certificate of Compliance shall not relieve the Contractor of responsibility for incorporating material into the Work which conforms to the requirements of the Contract Documents, and any material not conforming to the requirements will be subject to rejection by the Engineer whether in place or not.

5. Copies of mill certificates of composition and quality of all component materials (reinforcing steel, structural steel, lumber, etc.) incorporated in the construction of the Work shall be provided to the City at the time of delivery. City shall retain the right to reject any raw material not provided with a mill certificate at the time of delivery.
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6. If, after incorporating such materials into the Work, it is found that sources of supply that have been approved do not furnish a uniform product, or if the product from any source proves unacceptable at any time, the Contractor shall furnish approved material from other approved sources. If any product proves unacceptable after improper storage, handling or for any other reason it shall be rejected, not incorporated into the Work, and shall be removed from the Project Site all at the Contractor’s expense.

6.4 Requests for Substitutions.

A. For the purposes of this provision, the term “substitution” shall mean the substitution of any material, method or service substantially equal to or better in every respect to that indicated in the Standard Specifications or otherwise referenced herein.

B. Pursuant to Public Contract Code section 3400(b), the City may make a finding that is described in the Notice Inviting Bids that designates certain products, things, or services by specific brand or trade name.

C. Unless specifically designated in the Special Conditions, whenever any material, process, or article is indicated or specified by grade, patent, or proprietary name or by name of manufacturer, such specifications shall be deemed to be used for the purpose of facilitating the description of the material, process, or article desired and shall be deemed to be followed by the words “or equal.” Contractor may, unless otherwise stated, offer for substitution any material, process, or article which may be substantially equal to or better in every respect to that so indicated or specified in the Contract Documents. However, the City has adopted uniform standards for certain materials, processes, and articles.

D. The Contractor shall submit substitution requests, together with substantiating data, for substitution of any “or equal” material, process, or article no later than thirty-five (35) calendar days after award of Contract. Provisions regarding submission of substitution requests shall not in any way authorize an extension of time for the performance of this Contract. If a substitution request is rejected by the City, the Contractor shall provide the material, method or service specified herein. The City shall not be responsible for any costs incurred by the Contractor associated with substitution requests. The burden of proof as to the equality of any material, process, or article shall rest with the Contractor. The Engineer has the complete and sole discretion to determine if a material, process, or article is substantially equal to or better than that specified and to approve or reject all substitution requests.

E. Substantiating data as described above shall include, at a minimum, the following information:

1. A signed affidavit from the Contractor stating that the material, process, or article proposed as a substitution is substantially equal to or better than that specified in every way except as may be listed on the affidavit.

2. Illustrations, specifications, catalog cut sheets, and any other relevant data required to prove that the material, process, or article is substantially equal to or better than that specified.
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3. A statement of the cost implications of the substitution being requested, indicating whether and why the proposed substitution will reduce or increase the amount of the contract.

4. Information detailing the durability and lifecycle costs of the proposed substitution.

F. Failure to submit all the required substantiating data detailed above in a timely manner so that the substitution request can be adequately reviewed may result in rejection of the substitution request. The Engineer is not obligated to review multiple submittals related the same substitution request resulting from the Contractor’s failure to initially submit a complete package.

G. Time limitations within this Article shall be strictly complied with and in no case will an extension of time for completion of the contract be granted because of Contractor’s failure to provide substitution requests at the time and in the manner described herein.

H. The Contractor shall bear the costs of all the City work associated with the review of substitution requests.

I. If substitution requests approved by the Engineer require that Contractor furnish materials, methods or services more expensive than that specified, the increased costs shall be borne by Contractor.

ARTICLE 7 -SUBSURFACE AND PHYSICAL CONDITIONS; UTILITIES

7.1 Soils Investigations.

A. When a soils investigation report for the Site is available, such report is provided for informational purposes only. Any information obtained from such report as to subsurface soil condition, or to elevations of existing grades or elevations of underlying rock, is approximate only and is not guaranteed. Contractor acknowledges that any soils investigation report (including any borings) was prepared for purposes of design only and Contractor is required to examine the Site before submitting its Bid and must make whatever tests it deems appropriate to determine the condition of the so

7.2 Ownership of Site Materials Found.

A. The title to water, soil, rock, gravel, sand, minerals, timber and any other materials developed or obtained in the excavation or other operations of Contractor or any of its Subcontractors in the performance of the Contract, and the right to use said items in carrying out the Contract, or to dispose of same, is hereby expressly reserved by the City. Neither Contractor nor any of its Subcontractors nor any of their representatives or employees shall have any right, title, or interest in said materials, nor shall they assert or make any claim thereto. Contractor will, as determined by the City’s Representative, be permitted to use in the Work without charge, any such materials which meet the requirements of the Contract Documents, provided the City shall have the right to use or consume these materials without payment to a third party.
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7.3 Existence of Utilities at the Work Site.

A. Existing Utilities

1. The location of known existing utilities and pipelines are shown on the Plans in their approximate locations. However, nothing herein shall be deemed to require the City to indicate the presence of existing service laterals or appurtenances whenever the presence of such utilities on the site of the project can be inferred from the presence of other visible facilities, such as buildings, cleanouts, meter and junction boxes, on or adjacent to the Site of the Project.

2. The City will assume the responsibility for the timely removal, relocation, or protection of existing main or trunk line utility facilities located on the Project site if such utilities are not identified by the City in the Contract Documents or which cannot reasonably be inferred from the presence of other visible facilities.

B. Utility Location

1. It shall be the Contractor’s responsibility to determine the exact location and depth of all utilities, including service connections, which have been marked by the respective utility owners and which the Contractor believes may affect or be affected by the Contractor’s operations. The Contractor shall not be entitled to additional compensation nor time extensions for work necessary to avoid interferences nor for repair to damaged utilities if the Contractor does not expose all such existing utilities as required by this Article.

2. The locating of utilities shall be in conformance with Government Code Section 4216 et seq. except for the City’s utilities located on the City’s property and not on public right-of-way.

3. A “High Priority Subsurface Installation” is defined in Government Code Section 4216 (j) as “high-pressure natural gas pipelines with normal operating pressures greater than 415kPA gauge (60psig) or greater than six inches nominal pipe diameter, petroleum pipelines, pressurized sewage pipelines, high-voltage electric supply lines, conductors, or cables that have a potential to ground of greater than or equal to 60kv, or hazardous materials pipelines that are potentially hazardous to workers or the public if damaged.”

4. A “Subsurface Installation” is defined in Government Code Section 4216 (s) as “any underground pipeline, conduit, duct, wire, or other structure, except nonpressurized sewer lines, nonpressurized storm drains, or other nonpressurized drain lines.”

5. Pursuant to Government Code Section 4216.2 the Contractor shall contact the appropriate regional notification center at least two (2) working days but not more than 14 Days before performing any excavation. The date of the notification shall not count as part of the two-working-day notice. Before notifying the appropriate regional notification center, the Contractor shall delineate the area to be excavated. The Contractor shall request that the utility owners conduct a utility survey and mark or otherwise indicate the location of their service. The Contractor 189
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shall furnish to the Engineer written documentation of its contact(s) with the regional notification center prior to commencing excavation at such locations.

6. After the utility survey is completed, the Contractor shall commence “potholing” or hand digging to determine the actual location of the pipe, duct, or conduit and in accordance with Government Code Section 4216.4 if the excavation within the “tolerance zone” of a subsurface installation. The Engineer shall be given notice prior to commencing potholing operations. The Contractor shall uncover all piping and conduits, to a point one (1) foot below the pipe, where crossings, interferences, or connections are shown on the Drawings, prior to trenching or excavating for any pipe or structures, to determine actual elevations. New pipelines shall be laid to such grade as to clear all existing facilities, which are to remain in service for any period subsequent to the construction of the run of pipe involved.

7. The Contractor's attention is directed to the requirements of Government Code Section 4216.2 (c) which provides: “When the excavation is proposed within 10 feet of a high priority subsurface installation, the operator of the high priority subsurface installation shall notify the excavator of the existence of the high priority subsurface installation to set up an onsite meeting prior to the legal excavation start date and time or at a mutually agreed upon time to determine actions or activities required to verify the location and prevent damage to the high priority subsurface installation. As part of the meeting, the excavator shall discuss with the operator the method and tools that will be used during the excavation and the information the operator will provide to assist in verifying the location of the subsurface installation. The excavator shall not begin excavating until after the completion of the onsite meeting.” The Contractor shall notify the Engineer in advance of this meeting.

C. Utility Relocation and Repair

1. If interferences occur at locations other than those indicated in the Contract Documents with reasonable accuracy, the Contractor shall notify the Engineer in writing. The Engineer will supply a method for correcting said interferences in accordance with the responsibilities of this section and Government Code Section 4215. To the extent any delay is caused thereby, Contractor shall submit a notice of delay within five (5) Days of discovery of the circumstances giving rise to the delay in accordance with Article 9.1 Change Orders and Time Extensions.

2. Care shall be exercised by the Contractor to prevent damage to adjacent existing facilities and public or private works; where equipment will pass over these obstructions, suitable planking shall be placed. If high priority subsurface installations are damaged and the operator cannot be contacted, the Contractor shall call 911 emergency services.

3. The City will compensate the Contractor for the costs of locating and repairing damage not due to the failure of the Contractor to exercise reasonable care, and for removing or relocating such main or trunk line utility facilities not indicated in the Contract Documents with reasonable accuracy, and for the cost of equipment on the Project necessarily idled during such work. The payment for such costs will be made as provided in Article 9.1 Change Orders and Time Extensions. The 190
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Contractor shall not be assessed liquidated damages for delay in completion of the Project, when such delay is caused by the failure of the City or utility company to provide for removal or relocation of such utility facilities. Requests for extensions of time arising out of utility relocation or repair delays shall be filed in accordance with Article 9.1 Change Orders and Time Extensions and Article 9.3 Time for Completion and Liquidated Damages.

4. The public utility, where it is the owner of the affected utility, shall have the sole discretion to perform repairs or relocation work or permit the Contractor to do such repairs or relocation work at a reasonable price. The right is reserved to the City and the owners of utilities or their authorized agents to enter upon the Work area for the purpose of making such changes as are necessary for the rearrangement of their facilities or for making necessary connections or repairs to their properties.

The Contractor shall cooperate with forces engaged in such work and shall conduct its operations in such a manner as to avoid any unnecessary delay or hindrance to the work being performed by such forces and shall allow the respective utilities time to relocate their facility.

5. When the Contract Documents indicate that a utility is to be relocated, altered or constructed by others, the City will conduct all negotiations with the utility company and the work will be done at no cost to the Contractor, unless otherwise stipulated in the Contract Documents.

6. Temporary or permanent relocation or alteration of utilities desired by the Contractor for its own convenience shall be the Contractor’s responsibility and it shall make arrangements and bear all costs for such work.

D. Construction at Existing Utilities

1. Where the Work to be performed crosses or otherwise interferes with water, sewer, gas, or oil pipelines; buried cable; or other public or private utilities, the Contractor shall perform construction in such a manner so that no damage will result to either public or private utilities. It shall be the responsibility of the Contractor to determine the actual locations of, and make accommodates to maintain, all utilities.

2. Before any utility is taken out of service, permission shall be obtained by the Contractor from the owner. The owner, any impacted resident or business owner and the City Representative will be advised of the nature and duration of the utility outage as well as the Contractor’s plan for providing temporary utilities if required by the owner. The Contractor shall be liable for all damage which may result from its failure to maintain utilities during the progress of the Work, and the Contractor shall indemnify City as required by the Contract Documents from all claims arising out of or connected with damage to utilities encountered during construction; damages resulting from disruption of service; and injury to persons or damage to property resulting from the negligent, accidental, or intentional breaching of utilities.

3. Unless otherwise called for by the Contract Documents, the cost of all material, equipment, and labor required to complete this work, shall be included in 191
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Contractor’s bid and distributed in the schedule of pay Items. No additional compensation shall be made to the Contractor for this work.

7.4 Trenches
A. Trenches Five Feet or More in Depth.

1. Contractor shall submit to the Engineer at the preconstruction meeting, a detailed plan showing the design of shoring, bracing, sloping or other provisions to be made for worker protection from hazards of caving ground during the excavation of any trench or trenches five feet or more in depth. If such plan varies from shoring system standards established by the Construction Safety Orders of the California Code of Regulations, Department of Industrial Relations, the plan shall be prepared by a California registered civil or structural engineer. The plan shall not be less effective than the shoring, bracing, sloping, or other provisions of the Construction Safety Orders, as defined in the California Code of Regulations. The Contractor shall designate in writing the “competent person” as defined in Title 8, California Code of Regulations, who shall be present at the Work Site each day that trenching/excavation is in progress. The “competent person” shall prepare and provide daily trenching/excavation inspection reports to the Engineer.

Contractor shall also submit a copy of its annual California Occupational Safety and Health Administration (Cal/OSHA) trench/excavation permit.

B. Excavations Deeper than Four Feet.

1. If the Work involves excavating trenches or other excavations that extend deeper than four (4) feet below the surface, Contractor shall promptly within three (3) Days, and before the excavation is further disturbed, notify the City in writing of any of the following conditions:
a. Material that the Contractor believes may be material that is hazardous waste, as defined in section 25117 of the Health and Safety Code, that is required to be removed to a Class I, Class II, or Class III disposal site in accordance with provisions of existing law. b. Subsurface or latent physical conditions at the site differing from those indicated. c. Unknown physical conditions at the site of any unusual nature, different materially from those ordinarily encountered and generally recognized as inherent in work of the character provided for in the Contract

2. The City shall promptly investigate the conditions, and if it finds that the conditions do so materially differ, or do involve hazardous waste, and cause a decrease or increase in Contractor’s cost of, or the time required for, performance of any part of the Work, shall issue a Change Order under the procedures described in Article

9.1 Change Orders and Time Extensions.

3. In the event that a dispute arises between the City and the Contractor as to whether the conditions materially differ, or involve hazardous waste, or cause a decrease or increase in the Contractor’s cost of, or time required for, performance of any part of the Work, the Contractor shall not be excused from any scheduled completion date provided for by the Contract, but shall proceed with all Work to be 192
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performed under the Contract. Contractor shall retain any and all rights provided either by contract or by law which pertain to the resolution of disputes and protests between the parties.

ARTICLE 8 -PROSECUTION OF THE WORK

8.1 Contractor’s Means and Methods.

A. Contractor is solely responsible for the means and methods utilized to perform the Work. In no case shall the Contractor’s means and methods deviate from commonly used industry standards.

8.2 Construction Schedule.

A. General Requirements. The schedule shall be prepared in a Critical Path Method (“CPM”) format and in an electronic scheduling program acceptable to the City and as specified in the Contract Documents. Contractor shall deliver the schedule and all updates to the City in both paper and electronic form. The electronic versions shall be in the format and include all data used to prepare the schedule. Copies are not acceptable.

B. Schedule. The receipt or approval of any schedules by the City shall not in any way relieve the Contractor of its obligations under the Contract Documents. The Contractor is fully responsible to determine and provide for any and all staffing and resources at levels which allow for good quality and timely completion of the Project.

Contractor’s failure to incorporate all elements of Work required for the performance of the Contract or any inaccuracy in the schedule shall not excuse the Contractor from performing all Work required for a completed Project within the specified Contract Time. If the required schedule is not received by the time the first payment under the Contract is due, Contractor shall not be paid until the schedule is received, reviewed and accepted by the City.

C. Schedule Contents. The schedule shall allow enough time for inclement weather.

The schedule shall indicate the beginning and completion dates of all phases of construction; critical path for all critical, sequential time related activities; and “float time” for all “slack” or “gaps” in the non-critical activities. The schedule shall include appropriate time allowances and constraints for submittals, items of interface with Work performed by others, and specified construction, start-up and performance tests. All float shall be owned by the Project. Schedules indicating early or late completion shall not modify or have any effect on the Contract Time, regardless of whether the schedules are reviewed and/or accepted by the City. For purposes of determining Liquidated Damages, the Contract Time shall control and may only be altered by a duly authorized Change Order.

D. Schedule Updates. Contractor shall continuously update its construction schedule.

Contractor shall submit an updated and accurate construction schedule to the City:
(1) prior to the start of construction, if there are any changes to the initial schedule; (2) with each progress payment request; and (3) whenever requested to do so by the City. The City may withhold progress payments or other amounts due under the Contract Documents if Contractor fails to submit an updated and accurate 193
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construction schedule. Upon the City’s request, Contractor shall submit any schedules or updates to the City in the native electronic format of the software used to create the schedule. Contractor shall also submit schedules showing a two-week detailed look-ahead at weekly meetings conducted with the City. The two-week lookahead schedule shall clearly identify all staffing and other resources which in the Contractor’s judgment are needed to complete the Work within the Contract Time, and it shall clearly state the number of staff to be used on each daily segment of the Work.

E. Acceptance. Acceptance of the schedules by the City will not impose on responsibility for accuracy, for sequencing, scheduling, or progress of the Work, or compliance with the Contract Documents. Acceptance will not interfere with or relieve Contractor from Contractor’s full responsibility therefor.

F. Recovery Schedule.

1. Should any of the following conditions exist, City may require Contractor to prepare, at no extra cost to City, a plan of action and a recovery schedule for completing the Work and achieving all contractual milestones within the allotted Contract Time:
a. The Contractor's monthly progress report indicates delays that are, in the opinion of City, of sufficient magnitude that City questions the Contractor's ability to complete the Work; b. The schedule shows the Contractor to be thirty (30) or more days behind the critical path at any time during construction;
c. The Contractor desires to make changes in the logic or the planned duration of future activities of the schedule which, in the opinion of City, are major in nature.

2. The recovery schedule shall include proposed revisions to the Construction Schedule, demonstrating how Contractor intends to achieve all contractual milestones including Contract completion within the allotted Contract Time. The submittal shall include a narrative describing the actions planned by the Contractor to recover the schedule.

3. Contractor shall submit the Recovery Schedule within seven (7) Days of City’s request. If Contractor asserts that City is responsible for the delay, failure to submit the recovery schedule within seven (7) Days of City’s request, will be considered a concurrent delay event attributable to Contractor, and Contractor shall only be entitled to non-compensable adjustments to Contract Times. If Contractor is responsible for the delay, this provision will not limit or affect Contractor's liability and failure to submit the recovery schedule with seven (7) Days of City’s request may result in City withholding progress payments or other amounts due under the Contract Documents.

4. Contractor is responsible for all costs associated with the preparation and execution of the recovery schedule, including any necessary recovery actions, which may include, but are not limited to, assignment of additional labor, and/or equipment, shift or overtime work, expediting of submittals or deliveries, 194
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overlapping of activities or sequencing changes to increase activity concurrence.

Regardless of whether City directs Contractor to prepare a recovery schedule pursuant to this Section, Contractor shall promptly undertake appropriate action at no additional cost to City to recover the schedule whenever the current construction schedule shows that the Contractor will not achieve a milestone and/or complete the Work within the allotted Contract Time.

8.3 Time for Completion and Liquidated Damages
A. Time for Completion. The time for completion set forth in Article 2 of the Contract for Construction shall commence: (1) on the date stated in the Notice to Proceed, or (2) if the Notice to Proceed does not specify a commencement date, then on the date of the Notice to Proceed and shall be completed by Contractor in the time specified in the Contract Documents. The City is under no obligation to consider early completion of the Project; and the Contract completion date shall not be amended by the City’s receipt or acceptance of the Contractor’s proposed earlier completion date. Any difference in time between the Contractor’s early completion and the Contract Time shall be considered a part of the Project float. Contractor shall not be entitled to compensation, and the City will not compensate Contractor, for delays which impact early completion. Contractor shall not, under any circumstances, receive additional compensation from the City (including but not limited to indirect, general, administrative or other forms of overhead costs) for the period between the time of earlier completion proposed by the Contractor and the Contract completion date.

B. Liquidated Damages. If the Work is not completed within the Contract Time(s), it is understood that the City will suffer damage. In accordance with Government Code section 53069.85 and Public Contract Code section 7102, being impractical and infeasible to determine the amount of actual damage, it is agreed that Contractor shall pay to the City as fixed and liquidated damages, and not as a penalty, the sum stipulated in the Contract for each calendar day of delay until the Work is fully completed. Contractor and its surety shall be liable for any liquidated damages. Any money due or to become due the Contractor may be retained to cover liquidated damages.

C. Inclement Weather. Contractor shall abide by the City’s determination of what constitutes inclement weather. Time extensions for inclement weather shall only be granted when the Work stopped during inclement weather is on the critical path of the Project schedule. Contractor shall not be entitled to reverse liquidated damages for time extensions resulting from inclement weather.

D. Extension of Time. Contractor’s entitlement to an extension of the Contract Time is limited to a City-caused extension of the critical path, reduced by the Contractor’s concurrent delays, and established by a proper time impact analysis. Contractor shall not be charged liquidated damages because of any delays in completion of the Work due to unforeseeable causes beyond the control and without the fault or negligence of Contractor (or its Subcontractors or Suppliers). The City shall ascertain the facts and extent of delay and grant extension of time for completing the Work when, in its judgment, the facts justify such an extension. Contractor shall not be entitled to an adjustment in the Contract Times for delays within the control 195
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of Contractor. Delays attributable to and within the control of a Subcontractor or Supplier shall be deemed to be delays within the control of Contractor.

E. Reverse Liquidated Damages. Consistent with Public Contract Code Section 7102, Contractor will be compensated for damages incurred due to unreasonable delays to the critical path for which the City is responsible. The parties agree that determining Contractor’s exact delay damages are and will continue to be impracticable and extremely difficult. As such, for each calendar day in excess of the time for completion set forth in Article 2 of the Contract for Construction, the City shall pay to the Contractor the sum stipulated in the Contract per day. Such amount shall constitute the only payment allowed for any City-caused delays and shall necessarily include all overhead, all profits, all administrative costs, all bond costs, all labor, materials, equipment and rental costs and any other costs, expenses and fees incurred or sustained as a result of such delays. Contractor shall not be entitled to reverse liquidated damages for any change in the Work in which Contractor is compensated for overhead and profit through a change in Unit Price Work or a Change Order resulting in a lump sum or allowed mark-up for the additional Work.

The amount of reverse liquidated damages shall be reduced by Contractor’s concurrent delays.

F. Force Majeure. In accordance with subparagraphs “D” and “E” above, the Contractor shall not be charged liquidated damages, and the City shall not be responsible, for any delays resulting from a Force Majeure Event. If a delay to the critical path results from a Force Majeure Event, the Contractor will be entitled to a time extension but will not receive an adjustment to the Contract Price or any other compensation. Such a non-compensable adjustment shall be Contractor’s sole and exclusive remedy for such delays.

G. No Damages for Reasonable Delay. The City’s liability to Contractor for delays for which the City is responsible shall be limited to only an extension of time unless such delays were unreasonable under the circumstances. In no case shall the City be liable for any costs which are borne by the Contractor in the regular course of business, including, but not limited to, home office overhead and other ongoing costs. Damages caused by unreasonable City delay shall be based on actual costs only, no proportions or formulas shall be used to calculate any delay damages.

H. Procedure for Time Extensions and Delay Damages. Contractor shall not be entitled to any extension of time or any reverse liquidated damages unless Contractor properly notices the delay and adjustment to compensation and requests a Change Order in accordance with Article 9.1 Change Orders and Time Extensions.

Contractor’s failure to timely and fully comply with the Change Order procedures in the Contract Documents shall constitute a waiver of Contractor’s right to a time extension or reverse liquidated damages.

8.4 Contractor’s Responsibility for Work.

A. Until the acceptance of the Work by the Engineer as evidenced in writing, it shall be under the charge and care of the Contractor. The Contractor shall take every necessary precaution against injury or damage to any part thereof by the action of the elements or from any cause whether arising from the execution or non-execution 196
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of the Work. The Contractor shall rebuild, repair, restore and make good at its own expense all injuries or damages to any portion of the Work before its completion and acceptance. In the event of damage proximately caused by an Act of God, as defined by Section 7105 of the Public Contract Code, the City will pay for repair or restoration to damaged Work in excess of 5% of the total Bid.

8.5 Occupancy.

A. The City reserves the right to occupy or utilize any portion of the Work at any time before completion, and such occupancy or use shall not constitute acceptance of any part of Work covered by this Contract. This use shall not relieve the Contractor of its responsibilities under the Contract.

8.6 Securities for Money Withheld
A. Pursuant to section 22300 of the Public Contract Code of the State of California, Contractor may request the City to make retention payments directly to an escrow agent or may substitute securities for any money withheld by the City to ensure performance under the contract. At the request and expense of Contractor, securities equivalent to the amount withheld shall be deposited with the City or with a state or federally chartered bank as the escrow agent who shall return such securities to Contractor upon satisfactory completion of the contract. Deposit of securities with an escrow agent shall be subject to a written agreement substantially in the form provided in section 22300 of the Public Contract Code.

8.7 The City’s Right to Suspend/Terminate the Contract
A. Suspension of Work by the City

1. The City may, at its sole option, decide to suspend at any time the performance of all or any portion of the Work by notice in writing to Contractor. Such notice of suspension of Work will designate the amount and type of plant, labor, and equipment to be committed to the Project during the period of suspension.

Contractor shall use its best efforts to utilize its plant, labor, and equipment in such a manner as to minimize costs associated with suspension.

2. Upon receipt of any such notice, Contractor shall, unless the notice requires otherwise:
a. Immediately discontinue Work on the date and to the extent specified in the notice; b. Place no further orders or subcontracts for material, services, or facilities with respect to suspended Work other than to the extent required in the notice; c. Promptly make every reasonable effort to obtain suspension upon terms satisfactory to the City’s Representative of all orders, subcontracts, and rental agreements to the extent they relate to performance of Work suspended; and
d. Continue to protect and maintain the Work including those portions on which Work has been suspended.
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3. Except as provided by this Article, as full and complete compensation for such suspension, Contractor shall be granted an adjustment in the Contract Price based on a negotiated daily rate that reflects the Contractor’s actual costs associated with the demobilized condition of the Site and an extension of the Contract Times equal to the number of days performance of Work is suspended; provided, however, that no adjustment of Contract Price or extension of Contract Times shall be granted if the suspension results from Contractor's non-compliance with the requirements of the Contract.

B. Termination for Cause by the City:

1. In the sole estimation of the City, if the Contractor refuses or fails to prosecute the Work or any separable part thereof with such diligence as will insure its completion within the time specified by the Contract Documents, or any extension thereof, or fails to complete such Work within such time, or if the Contractor should be adjudged a bankrupt, or if it should make a general assignment for the benefit of its creditors, or if a receiver should be appointed on account of its insolvency, or the Contractor or any of its subcontractors should violate any of the provisions of this Contract, the City may serve written notice upon the Contractor and its surety of the City's intention to terminate this Contract. This notice of intent to terminate shall contain the reasons for such intention to terminate this Contract, and a statement to the effect that the Contractor's right to perform this Contract shall cease and terminate upon the expiration of ten (10) Days unless such violations have ceased and arrangements satisfactory to the City have been made for correction of said violations.

2. After expiration of the ten (10) Day period, the City may terminate the Contract by providing a Notice of Termination to the Contractor. The City may take over and complete the Work by any method it may deem appropriate, including enforcement of the Project performance bond. Contractor and its surety shall be liable to the City for any excess costs or other damages incurred by the City to complete the Work. If the City takes over the Work, the City may, without liability for so doing, take possession of and utilize in completing the Work such materials, appliances, plant, and other property belonging to the Contractor as may be on the Site.

3. Upon termination, Contractor shall not be entitled to receive any further payment from the City, except for Work which was duly performed prior to the effective date of the Notice of Termination. Contractor shall submit an invoice for final payment within thirty (30) Days of the effective date of the Notice of Termination. The City may withhold from final payment up to 150% of any disputed amounts, including any amounts which may be necessary to repair defective Work, complete unfinished Work, or are otherwise occasioned by Contractor’s failure to perform its duties under the Contract.

C. Termination for Convenience by the City:

1. The City may terminate performance of the Work called for by the Contract Documents in whole or, from time to time, in part, upon ten (10) Days written notice if the City determines that a termination is in the City's interest. 198
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2. The Contractor shall terminate all or any part of the Work upon delivery to the Contractor of a Notice of Termination specifying that the termination is for the convenience of the City, the extent of termination, and the effective date of such termination.

3. After receipt of Notice of Termination, and except as directed by the City's Representative, the Contractor shall, regardless of any delay in determining or adjusting any amounts due under this termination for convenience clause, immediately proceed with the following obligations:
a. Stop Work as specified in the Notice.
b. Complete any Work specified in the Notice of Termination in a least cost/shortest time manner while still maintaining the quality called for under the Contract Documents. c. Leave the property upon which the Contractor was working and upon which the facility (or facilities) forming the basis of the Contract Document is situated in a safe and sanitary manner such that it does not pose any threat to the public health or safety. d. Terminate all subcontracts to the extent that they relate to the portions of the Work terminated.
e. Place no further subcontracts or orders, except as necessary to complete the continued portion of the Contract.
f. Submit to the City's Representative, within ten (10) Days from the effective date of the Notice of Termination, all of the usual documentation called for by the Contract Documents to substantiate all costs incurred by the Contractor for labor, materials and equipment through the effective date of the Notice of Termination. Any documentation substantiating costs incurred by the Contractor solely as a result of the City's exercise of its right to terminate this Contract pursuant to this clause, which costs the contractor is authorized under the Contract documents to incur, shall: (1) be submitted to and received by the Engineer no later than 30 Days after the effective date of the Notice of Termination; (2) describe the costs incurred with particularity; and (3) be conspicuously identified as “Termination Costs occasioned by the City's Termination for Convenience.” If the City rejects any costs, Contractor shall be deemed to waive the rejected costs unless Contractor files a Claim within thirty (30) Days of the rejection pursuant to Article 9.2. g. Contractor shall be entitled to receive only the amounts payable under this Article, and Contractor specifically waives any claim for any other amounts or damages, including, but not limited to, any claim for consequential damages or lost profits. The provisions in this Article are in addition to and not in limitation of any other rights or remedies available to the City.

4. Termination of the Contract shall not relieve surety of its obligation for any just claims arising out of or relating to the Work performed.

5. Notwithstanding any other provision of this Article, when immediate action is necessary to protect life and safety or to reduce significant exposure or liability, the City may immediately order Contractor to cease Work on the Project until such 199
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safety or liability issues are addressed to the satisfaction of the City or the Contract is terminated.

6. If the City terminates Contractor for cause, and if it is later determined that the termination was wrongful, such default termination shall automatically be converted to and treated as a termination for convenience. In such event, Contractor shall be entitled to receive only the amounts payable under this section, and Contractor specifically waives any claim for any other amounts or damages, including, but not limited to, any claim for consequential damages or lost profits.

8.8 Completion and Acceptance of Work
A. Final Inspection. Upon written notice from Contractor that the entire Work is complete, the Engineer will promptly make a final inspection with the City and Contractor and will notify Contractor in writing of all particulars in which this inspection reveals that the Work is incomplete or defective. Contractor shall immediately take such measures as are necessary to complete such Work or remedy such deficiencies.

B. Final Acceptance. The acceptance of the Work on behalf of the City will be made by the Engineer. Such acceptance by the City shall not constitute a waiver of defects. After Contractor has, in the opinion of the Engineer, satisfactorily completed all corrections identified during the final inspection and has delivered, in accordance with the Contract Documents, all maintenance and operating instructions, schedules, guarantees, bonds, certificates or other evidence of insurance, certificates of inspection, Record Documents, and other documents required by the Contract Documents, the City shall execute a Notice of Completion, constituting final acceptance and completion of the Project, except as may be expressly noted.

8.9 Warranty and Guaranty of Work.

A. Contractor hereby warrants that materials and Work shall be completed in conformance with the Contract Documents and that the materials and Work provided will fulfill the requirements of this Warranty. Contractor hereby agrees to repair or replace, at the discretion of the City, any or all Work that may prove to be defective in its workmanship, materials furnished, methods of installation or fail to conform to the Contract Document requirements together with any other Work which may be damaged or displaced by such defect(s) within a period of one (1) year (or as otherwise indicated in the Contract Documents or in any guarantee or warranty provided by any manufacturer or supplier of equipment or materials incorporated into the Work, whichever is later) from the date of the Notice of Completion of the Project without any expense whatever to the City, ordinary wear and tear and unusual abuse and neglect excepted. Contractor shall be required to promptly repair or replace defective equipment or materials, at Contractor’s option. All costs associated with such corrective actions and testing, including the removal, replacement, and reinstitution of equipment and materials necessary to gain access, shall be the sole responsibility of the Contractor.

B. For any Work so corrected, Contractor’s obligation hereunder to correct defective Work shall be reinstated for an additional one (1) year period, commencing with the 200
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date of acceptance of such corrected Work. The reinstatement of the one (1) year warranty shall apply only to that portion of work that was corrected. Contractor shall perform such tests as the City may require to verify that any corrective actions, including, without limitation, redesign, repairs, and replacements comply with the requirements of the Contract. In the event of Contractor’s failure to comply with the above-mentioned conditions within ten (10) Days after being notified in writing of required repairs, to the reasonable satisfaction of the City, the City shall have the right to correct and replace any defective or non-conforming Work and any work damaged by such work or the replacement or correction thereof at Contractor’s sole expense. Contractor shall be obligated to fully reimburse the City for any expenses incurred hereunder immediately upon demand.

C. In addition to the warranty set forth in this Article, Contractor shall obtain for the City all warranties that would be given in normal commercial practice and assign to the City any and all manufacturer’s or installer’s warranties for equipment or materials not manufactured by Contractor and provided as part of the Work, to the extent that such third-party warranties are assignable and extend beyond the warranty period set forth in this Article. Contractor shall furnish the City with all warranty and guarantee documents prior to final acceptance of the Project by the City as required.

D. When specifically indicated in the Contract Documents or when directed by the Engineer, the City may furnish materials or products to the Contractor for installation.

In the event any act or failure to act by Contractor shall cause a warranty applicable to any materials or products purchased by the City for installation by the Contractor to be voided or reduced, Contractor shall indemnify the City from and against any cost, expense, or other liability arising therefrom, and shall be responsible to the City for the cost of any repairs, replacement or other costs that would have been covered by the warranty but for such act or failure to act by Contractor.

E. The Contractor shall remedy at its expense any damage to City-owned or controlled real or personal property.

F. The City shall notify the Contractor, in writing, within a reasonable time after the discovery of any failure, defect, or damage. The Contractor shall within ten (10) Days after being notified commence and perform with due diligence all necessary Work. If the Contractor fails to promptly remedy any defect or damage, the City shall have the right to replace, repair or otherwise remedy the defect, or damage at the Contractor’s expense.

G. In the event of any emergency constituting an immediate hazard to health, safety, property, or licensees, when caused by Work of the Contractor not in accordance with the Contract requirements, the City may undertake at Contractor’s expense, and without prior notice, all Work necessary to correct such condition.

H. Acceptance of Defective Work.

1. If, instead of requiring correction or removal and replacement of defective Work, the City prefers to accept it, the City may do so. Contractor shall pay all claims, costs, losses, and damages (including but not limited to all fees and charges of engineers, architects, attorneys, and other professionals and all court or arbitration 201
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or other dispute resolution costs) attributable to the City’s evaluation of and determination to accept such defective Work and for the diminished value of the Work. If any acceptance of Defective Work occurs prior to release of the Project retention, a Change Order will be issued incorporating the necessary revisions in the Contract Documents with respect to the Work, and the City shall be entitled to an appropriate decrease in the Contract Price, reflecting the diminished value of Work and all costs incurred by the City. If the acceptance of defective occurs after release of the Project retention, an appropriate amount will be paid by Contractor to the City.

I. The City May Correct Defective Work

1. If Contractor fails within a reasonable time after written notice from the City to correct Defective Work, or to remove and replace rejected Work as required by the City, or if Contractor fails to perform the Work in accordance with the Contract Documents, or if Contractor fails to comply with any other provision of the Contract Documents, the City may, after seven (7) Days written notice to Contractor, correct, or remedy any such deficiency.

2. In connection with such corrective or remedial action, the City may exclude Contractor from all or part of the Site, take possession of all or part of the Work and suspend Contractor’s services related thereto, take possession of Contractor’s tools, appliances, construction equipment and machinery at the Site, and incorporate in the Work all materials and equipment stored at the Site or for which the City has paid Contractor but which are stored elsewhere. Contractor shall allow the City, and the agents, employees, other contractors, and consultants of each of them, access to the Site to enable the City to exercise the rights and remedies to correct the Defective Work.

3. All claims, costs, losses, and damages (including but not limited to all fees and charges of engineers, architects, attorneys, and other professionals and all court or arbitration or other dispute resolution costs) incurred or sustained by the City correcting the Defective Work will be charged against Contractor, and a Change Order will be issued incorporating the necessary revisions in the Contract Documents with respect to the Work; and the City shall be entitled to an appropriate decrease in the Contract Price. Such claims, costs, losses and damages will include but not be limited to all costs of repair, or replacement of work of others destroyed or damaged by correction, removal, or replacement of defective Work.

4. If the Change Order is executed after all payments under the Contract have been paid by the City and the Project Retention is held in an escrow account as permitted by the Contract Documents, Contractor will promptly alert the escrow holder, in writing, of the amount of Retention to be paid to the City. If the Change Order is executed after release of the Project retention, an appropriate amount will be paid by Contractor to the City. Contractor shall not be allowed an extension of the Contract Times because of any delay in the performance of the Work attributable to the City correcting Defective Work.
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J. Nothing in the warranty or in the Contract Documents shall be construed to limit the rights and remedies available to the City at law or in equity, including, but not limited to, Code of Civil Procedure section 337.15.

ARTICLE 9 -CHANGE ORDERS; DISPUTE RESOLUTION

9.1 Change Orders and Time Extensions
All changes to the Contract, including compensation increases and time extensions, shall be through a written Change Order in accordance with this Article. The City, without invalidating the Contract, may order changes in the Work consisting of additions, deletions or other revisions, and Contractor’s compensation and the time for completion shall be adjusted accordingly. Whenever any change is made as provided for herein, such change shall be considered and treated as though originally included in the Contract, and shall be subject to all terms, conditions, and provisions of the original Contract. Contractor shall not be entitled to claim or bring suit for damages, whether for loss of profits or otherwise, on account of any decrease or omission of any item or portion of Work to be done. No dispute, disagreement, or failure of the parties to reach agreement on the terms of the Change Order shall relieve the Contractor from the obligation to proceed with performance of the Work, including Additional Work, promptly and expeditiously.

Any alterations, extensions of time, Additional Work, or any other changes may be made without securing consent of the Contractor’s surety or sureties.

A. Change in Contract Procedures

1. City Directive. The City may direct changes in the Work by delivering a written directive. To the extent the work directive results in a change to compensation or time, Contractor must timely request a Change Order and comply with all Change Order procedures in accordance with this Article. Notwithstanding issuance of a work directive, Contractor’s failure to timely request a Change Order shall constitute a waiver by Contractor of any adjustment to compensation or time extension for Work performed under the directive. The City shall not be liable to Contractor for Work performed or omitted by Contractor in reliance on verbal orders.

2. Contractor’s Notice of Change/Delay. If Contractor intends to initiate a Change Order Request, then Contractor shall provide the City with written notice of the underlying facts and circumstances that gave rise to the proposed change within the following times:
a. If due to unknown subsurface or latent physical conditions, within three (3) Days from the discovery date or prior to the alterations of the conditions, whichever is earlier. b. If due to a Force Majeure Event, as soon as reasonably practicable under the conditions, which shall be no longer than three (3) Days from the date the Contractor discovers that the Force Majeure Event gives rise to a change, unless that the conditions are such that notice within three (3) Days is not possible or practicable. c. If due to any other matter that may involve an adjustment to the Contract Time or the Contract Price, within seven (7) days from the discovery date. 203
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To be considered valid and complete, the notice of change/delay shall include a general statement of the circumstances giving rise to the notice of change/delay and a reasonable order of magnitude estimate of the additional costs and/or time.

If the circumstances give rise to both a cost adjustment and time extension, Contractor shall submit the notice of change and notice of delay concurrently.

3. Request for Change in Compensation and/or Extension of Time. Contractor shall submit a Change Order Request for any adjustment to Contractor’s compensation and/or any extension of time. The Change Order Request shall be made prior to incurring any expense and within fourteen (14) Days from either Contractor’s notice of change/delay or the City’s directive ordering the change. The Change Order Request shall include all of the following information (unless inapplicable to the change):
a. A detailed description of the circumstances giving rise to the request; b. A complete itemized cost proposal, including itemized pricing for first tier Subcontractors; c. Supporting documentation for all costs;
d. A time impact analysis showing the impact of the delay to the critical path to completion; e. If any added costs or information cannot be determined at the time of the Change Order Request, the reason the costs or information cannot be determined at the time; and f. Certification to the accuracy of the Change Order Request under penalty of perjury.

The time impact analysis shall be in the critical path method format and shall show the sequencing of all critical and non-critical new activities and/or activity revisions affected by the delay, with logic ties to all affected existing activities noted on the schedule.

The City may demand, and Contractor shall provide, any additional information supporting the Change Order Request, including but not limited to native electronic format version of schedules and time impact analyses. Contractor shall provide the requested additional information within five (5) Days of the request.

For any costs or information that cannot be determined at the time Contractor submits the Change Order Request, Contractor shall submit to the City notice of the costs or information and all supporting documentation within five (5) Days of when the costs or other information become subject to determination.

4. City’s Final Decision on Change Order; Ordered Changes. If the City denies the Change Order Request or disagrees with the proposal submitted by Contractor, it will notify the Contractor, and the City will provide its opinion of the appropriate price and/or time extension. If no agreement can be reached, the City shall have the right to order the Work performed on a time and materials basis or to issue a unilateral Change Order setting forth the City’s determination of the reasonable additions or savings in costs and time attributable to the extra or deleted work. The City shall also have the right to order changes in the Work to be performed 204
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promptly by the Contractor on a time and materials basis or to issue a unilateral Change Order setting forth the City’s determination of the reasonable additions or savings in costs and time attributable to the extra or deleted work. The City’s determination shall become final and binding if the Contractor fails to submit a Claim in writing to the City within fourteen (14) Days of the issuance of the unilateral Change Order, disputing the terms of the unilateral Change Order and providing such supporting documentation for its position as the City may reasonably require.

5. Contractor’s Waiver of Further Relief. CONTRACTOR’S FAILURE TO PROVIDE

A COMPLETE AND TIMELY NOTICE OF CHANGE/DELAY AND/OR CHANGE

ORDER REQUEST, OR TO COMPLY WITH ANY OTHER REQUIREMENT OF

THIS ARTICLE, SHALL CONSTITUTE A WAIVER BY CONTRACTOR OF THE

RIGHT TO A CONTRACT ADJUSTMENT ON ACCOUNT OF SUCH

CIRCUMSTANCES AND A WAIVER OF ANY RIGHT TO FURTHER RECOURSE

OR RECOVERY BY REASON OF OR RELATED TO SUCH CHANGE BY

MEANS OF THE CLAIMS DISPUTE RESOLUTION PROCESS OR BY ANY

OTHER LEGAL PROCESS OTHERWISE PROVIDED FOR UNDER
APPLICABLE LAWS.

Contractor recognizes and acknowledges that timely submission of a formal written notice of change/delay and Change Order Request, whether or not the circumstances of the change may be known to the City or available to the City through other means, is not a mere formality but is of crucial importance to the ability of the City to promptly identify, prioritize, evaluate and mitigate the potential effects of changes. Any form of informal notice, whether verbal or written (including, without limitation, statements in requests for information, statements in Submittals, statements at any job meeting or entries on monthly reports, daily logs or job meeting minutes), that does not strictly comply with the formal requirements of this Article, shall accordingly be insufficient.

6. Change Order Format
a. A Change Order signed by the Contractor indicates the Contractor's agreement therewith, including any adjustment in compensation or extension of time, and the full and final settlement of all costs (direct, indirect and overhead) related to the Work authorized by the Change Order.
b. The City may designate the forms to be used for notices, requests, and Change Orders.

If so designated, Contractor may only use such forms. Contractor shall not reserve a right to assert impact costs, extended job site costs, extended overhead, constructive acceleration and/or actual acceleration beyond what is stated in the Change Order. No Claims shall be allowed for impact, extended overhead costs, constructive acceleration and/or actual acceleration due to a multiplicity of changes and/or clarifications. The Contractor may not change or modify the City’s Change Order form in an attempt to reserve additional rights.

B. Determining Adjustments to Compensation.
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1. Limitation on Costs. Contractor shall not be entitled to any compensation for Work subject to a Change Order except as expressly set forth in this Article. The markup added in instances of Additional Work shall constitute the entire amount of profit, any mark-ups, any field or home office overhead costs, including personnel, equipment or office space, any materials, or any costs of equipment idle time for such Work.

2. Unit Price Change Orders. When the actual quantity of a Unit Price Work item varies from the Bid Schedule, compensation for the change in quantity will be calculated by multiplying the actual quantity by the unit price. This calculation may result in either an additive or deductive Change Order. Bid items included on the Bid Schedule may be deducted from the Work in their entirety without any negotiated extra costs. Because Unit Price Work includes overhead and profit as determined by Contractor at the time of its Bid submission, no mark up or deduction for overhead and profit will be allowed.

3. Lump Sum Change Orders. Whenever possible, any changes affecting compensation shall be in a lump sum mutually agreed by the Contractor and the City.

4. Time and Materials Change Orders. The City may direct the Contractor to proceed with the Additional Work with payment to be made on the basis of actual cost of the labor and materials required to complete the Additional Work. If the Project is federally funded, a time and materials Change Order shall only be issued after a determination that no other Change Order is suitable and the Change Order shall include a ceiling price that the Contractor exceeds at its own risk.

5. Federally Funded Projects. For any change in price to the Contract, general and administrative expenses shall be negotiated and must conform to the cost principles set forth under at 2 C.F.R. Part 200, subpart E, and profit shall be negotiated as a separate element of the cost. To establish a fair and reasonable profit, consideration must be given to the complexity of the Additional Work to be performed, the risk borne by the Contractor, the Contractor's investment, the amount of subcontracting, the quality of its record of past performance, and industry profit rates in the surrounding geographical area for similar work.

6. Allowed Costs. Estimates for lump sum quotations and accounting for time-andmaterial work shall be limited to direct expenditures necessitated specifically by the change and shall be segregated as follows:
a. Labor. The costs of labor will be the actual cost for wages prevailing locally for each craft or type of worker at the time the Additional Work is done, plus employer payments of payroll taxes and insurance, health and welfare, pension, vacation, apprenticeship funds, and other direct costs resulting from federal, state or local laws, as well as assessment or benefits required by lawful collective bargaining agreements. The use of a labor classification which would increase the Additional Work cost will not be permitted unless the Contractor establishes the necessity for such additional costs. Labor costs for equipment operators and helpers shall be reported only when such costs are not included in the invoice for equipment rental.
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b. Materials. The cost of materials reported shall be at the lowest current price at which such materials are locally available in the quantities involved, plus sales tax, freight and delivery. Materials costs shall be based upon supplier or manufacturer’s invoice. c. Tool and Equipment Use. Regardless of ownership, the rates to be used in determining equipment use shall not exceed listed rates prevailing locally at equipment rental agencies, or distributors, at the time the work is performed. The Contractor shall furnish cost data supporting the establishment of the rental rate. The rental rate to be applied for use of each items of equipment shall be the rate resulting in the least total cost to the City for the total period of use. The City shall the make the final determination as to an equitable rental rate for the equipment. No payment will be made for the use of small tools, which have a replacement value of $1,000 or less. (i) The rental time to be paid for equipment shall be the time the equipment is in productive operation on the Additional Work being performed. Rental time will not be allowed while equipment is inoperative due to breakdowns. (ii) All equipment shall, in the opinion of the City, be in good working condition and suitable for the purpose for which the equipment is to be used. Equipment with no direct power unit shall be powered by a unit of at least the minimum rating recommended by the manufacturer.
(iii) Before construction equipment is used on any Additional Work, the Contractor shall plainly stencil or stamp an identifying number thereon at a conspicuous location, and shall furnish to the City, in duplicate, a description of the equipment and its identifying number.
(iv) When hourly rates are listed, any part of an hour less than 30 minutes of operation shall be considered to be 1/2-hour of operation, and any part of an hour greater than 30 minutes will be considered one hour of operation. When daily rates are listed, any part of a day less than 4 hours operation shall be considered to be 1/2- day of operation.
d. Allowed Mark-up. The allowed mark-up for any and all overhead (including supervision and home and field office costs) and profit on work added to the Contract shall be determined in accordance with the following provisions:
(i) “Net Cost” is defined as the actual costs of labor, materials and tools and equipment only, excluding overhead and profit. The costs of applicable insurance and bond premium will be reimbursed to the Contractor and Subcontractors at cost only, without mark-up. Contractor shall provide the City with documentation of the costs, including but not limited to payroll records, invoices, and such other information as the City may reasonably request.
(ii) For Work performed by the Contractor’s forces the allowed mark-up shall not exceed fifteen (15%) percent of labor costs, ten percent (10%) of material costs, and ten percent (10%) of the cost of tools and equipment use. (iii) For Work performed by a Subcontractor, the added cost for overhead and profit shall not exceed fifteen percent (15%) of the Subcontractor’s Net Cost of the Work 207
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to which the Contractor may add up to five percent (5%) of the Subcontractor’s Net Cost.
(iv) For Work performed by a sub-subcontractor, the added cost for overhead and profit shall not exceed fifteen percent (15%) of the sub-subcontractor’s Net Cost for Work to which the Subcontractor and Contractor may each add up to an additional five percent (5%) of the Net Cost of the lower tier subcontractor. (v) No additional mark-up will be allowed for lower tier subcontractors, and in no case shall the added cost for overhead and profit payable by the City exceed twentyfive percent (25%) of the Net Cost as defined herein, of the party that performs the Work.
(vi) Calculation of the mark-up will be subject to the limitations above and to calculation as further detailed in (b)(B)(5) above.
e. Documentation of Time-and-Material Costs.
(i) T&M Daily Sheets. Contractor must submit timesheets, materials invoices, records of equipment hours, and records of rental equipment hours to the City’s for an approval signature each day that Work is performed on a time-and-material basis.

The Engineer’s signature on time sheets only serves as verification that the Work was performed and is not indicative of the City’s agreement to Contractor’s entitlement to the cost.
(ii) T&M Summary Sheet. Contractor shall submit a T&M Summary Sheet, which shall include total actual costs, within five (5) Days following completion of Additional Work on a time-and-material basis. Contractor’s total actual cost shall be presented in a summary table in an electronic spreadsheet file by labor, material, equipment, and any other costs, along with documentation supporting the costs.

Contractor’s failure to submit the T&M Summary Sheet within five (5) Days of completion of the Additional Work will result in Contractor’s waiver for any reimbursement of any costs associated with the Additional Work. f. Excluded Costs. The following costs or any other home or field office overhead costs, all of which are to be considered administrative costs covered by the Contractor’s mark-up, shall not be allowed costs and shall not be included in any lump sum proposals or timeand-materials invoices:
(i) Overhead Cost. Payroll costs and other compensation of Contractor’s officers, executives, principals, general managers, engineers, architects, estimators, attorneys, auditors, accountants, purchasing and contracting agents, timekeepers, clerks, and other personnel employed by Contractor whether at the Site or in Contractor’s principal office or any branch office, material yard, or shop for general administration of the Work;
(ii) Office Expenses. Expenses of Contractor’s principal and branch offices; (iii) Capital Expenses. Any part of Contractor’s capital expenses, including interest on Contractor’s capital employed for the Additional Work and charges against Contractor for delinquent payments;
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(iv) Negligence. Costs due to the negligence of Contractor or any Subcontractor or Supplier, or anyone directly or indirectly employed by any of them or for whose acts any of them may be liable, including without limitation the correction of Defective Work, disposal of materials or equipment wrongly supplied, and making good any damage to property;
(v) Small Tools. Cost of small tools valued at less than $1,000 and that remain the property of Contractor;
(vi) Administrative Costs. Costs associated with the preparation of Change Orders (whether or not ultimately authorized), cost estimates, or the preparation or filing of Claims;
(vii)Anticipated Lost Profits. Expenses of Contractor associated with anticipated lost profits or lost revenues, lost income or earnings, lost interest on earnings, or unpaid retention;
(viii) Home Office Overhead. Costs derived from the computation of a “home office overhead” rate by application of the Eichleay, Allegheny, burden fluctuation, or other similar methods;
(ix) Special Consultants and Attorneys. Costs of special consultants or attorneys, whether or not in the direct employ of Contractor, employed for services specifically related to the resolution of a Claim, dispute, or other matter arising out of or relating to the performance of the Additional Work.
(x) Other. Other overhead or general expense costs of any kind and the cost of any item not specifically and expressly included in the Contract Documents; including but not limited to: submittals, drawings, field drawings, shop drawings, including submissions of drawings; field inspection; general superintendence; computer services; reproduction services; salaries of project engineer, superintendent, timekeeper, storekeeper, and secretaries; janitorial services; small tools, incidentals and consumables; temporary on-site facilities (offices, telephones, high speed internet access, plumbing, electrical power, lighting; platforms, fencing, water); surveying; estimating; protection of work; handling and disposal fees; final cleanup; other incidental work; related warranties; insurance and bond premiums. (xi) Compliance with Federal Cost Principles. If the Project is federally funded, any costs that are not allowable, reasonable and allocable to the Project, under generally accepted accounting principles and the applicable federal requirements.

9.2 Procedure for Resolving Claims.

Contractor shall timely comply with any and all requirement of the Contract Documents pertaining to notices and requests for changes to the Contract Time or Contract Price, including but not limited to all requirements of Article 9.1, as a prerequisite to filing any claim governed by this Article. The failure to timely submit a notice of delay or notice of change, or to timely request a change to the time for completion or Contractor’s compensation, or to timely provide any other notice or request required herein shall constitute a waiver of the right to further pursue the claim under the Contract or at law.
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A. Intent. Effective January 1, 1991, Section 20104 et seq., of the California Public Contract Code prescribes a process utilizing informal conferences, non-binding judicial supervised mediation, and judicial arbitration to resolve disputes on construction claims of $375,000 or less. Effective January 1, 2017, Section 9204 of the Public Contract Code prescribes a process for negotiation and mediation to resolve disputes on construction claims. The intent of this Article is to implement Sections 20104 et seq. and Section 9204 of the California Public Contract Code.

This Article shall be construed to be consistent with all applicable law, including but not limited to these statutes.

B. Claims. For purposes of this Article, “Claim” means a separate demand by the Contractor for:

1. An adjustment to the time for completion including, without limitation, for relief from damages or penalties for delay assessed by the City;

2. Payment by the City of money or damages arising from Work done by or on behalf of the Contractor pursuant to the Contract, payment for which is not otherwise expressly provided or to which the Contractor is not otherwise entitled; or

3. An amount the payment of which is disputed by the City.

A “Claim” does not include any demand for payment for which the Contractor has failed to provide notice, request a Change Order, or otherwise failed to follow any procedures contained in the Contract Documents.

C. Filing Claims. Claims governed by this Article may not be filed unless and until the Contractor completes any and all requirements of the Contract Documents pertaining to notices and requests for changes to the Contract Time or Contract Price, and Contractor’s request for a change has been denied in whole or in part.

Claims governed by this Article must be filed no later than thirty (30) Days after a request for change has been denied in whole or in part or after any other event giving rise to the Claim. The Claim shall be submitted in writing to the City and shall include on its first page the following words in 16 point capital font: “THIS IS A CLAIM.” The Claim shall include the all information and documents necessary to substantiate the Claim, including but not limited to those identified below. Nothing in this Article is intended to extend the time limit or supersede notice requirements otherwise provided by Contract Documents. Failure to follow such contractual requirements shall bar any Claims or subsequent proceedings for compensation or payment thereon.

D. Documentation. The Contractor shall submit all Claims in the following format:

1. Summary description of Claim including basis of entitlement, merit and amount of time or money requested, with specific reference to the Contract Document provisions pursuant to which the Claim is made

2. List of documents relating to Claim:
a. Specifications
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b. Drawings
c. Clarifications (Requests for Information)
d. Schedules
e. Other

3. Chronology of events and correspondence

4. Narrative analysis of Claim merit

5. Analysis of Claim cost, including calculations and supporting documents

6. Time impact analysis in the form required by the Contract Documents or, if the Contract Documents do not require a particular format, CPM format, if an adjustment of the Contract Time is requested
E. City’s Response. Upon receipt of a Claim pursuant to this Article, the City shall conduct a reasonable review of the Claim and, within a period not to exceed 45 Days, shall provide the Contractor a written statement identifying what portion of the Claim is disputed and what portion is undisputed. Any payment due on an undisputed portion of the Claim will be processed and made within 60 Days after the City issues its written statement.

1. If the City needs approval from its governing body to provide the Contractor a written statement identifying the disputed portion and the undisputed portion of the Claim, and the City’s governing body does not meet within the 45 Days or within the mutually agreed to extension of time following receipt of a Claim sent by registered mail or certified mail, return receipt requested, the City shall have up to three (3) Days following the next duly publicly noticed meeting of the City’s governing body after the 45-Day period, or extension, expires to provide the Contractor a written statement identifying the disputed portion and the undisputed portion.

2. Within 30 Days of receipt of a Claim, the City may request in writing additional documentation supporting the Claim or relating to defenses or Claims the City may have against the Contractor. If additional information is thereafter required, it shall be requested and provided pursuant to this subdivision, upon mutual agreement of the City and the Contractor. The City’s written response to the Claim, as further documented, shall be submitted to the Contractor within 30 Days (if the Claim is less than $50,000, within 15 Days) after receipt of the further documentation, or within a period of time no greater than that taken by the Contractor in producing the additional information or requested documentation, whichever is greater.

F. Meet and Confer. If the Contractor disputes the City’s written response, or the City fails to respond within the time prescribed, the Contractor may so notify the City, in writing, either within 15 Days of receipt of the City’s response or within 15 Days of the City’s failure to respond within the time prescribed, respectively, and demand in writing an informal conference to meet and confer for settlement of the issues in 211
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dispute. Upon receipt of a demand, the City shall schedule a meet and confer conference within 30 Days for settlement of the dispute.

G. Mediation. Within 10 business days following the conclusion of the meet and confer conference, if the Claim or any portion of the Claim remains in dispute, the City shall provide the Contractor a written statement identifying the portion of the Claim that remains in dispute and the portion that is undisputed. Any payment due on an undisputed portion of the Claim shall be processed and made within 60 Days after the City issues its written statement. Any disputed portion of the Claim, as identified by the Contractor in writing, shall be submitted to nonbinding mediation, with the City and the Contractor sharing the associated costs equally. The public entity and Contractor shall mutually agree to a mediator within 10 business days after the disputed portion of the Claim has been identified in writing, unless the parties agree to select a mediator at a later time.

1. If the parties cannot agree upon a mediator, each party shall select a mediator and those mediators shall select a qualified neutral third party to mediate with regard to the disputed portion of the Claim. Each party shall bear the fees and costs charged by its respective mediator in connection with the selection of the neutral mediator.

2. For purposes of this Article, mediation includes any nonbinding process, including, but not limited to, neutral evaluation or a dispute review board, in which an independent third party or board assists the parties in dispute resolution through negotiation or by issuance of an evaluation. Any mediation utilized shall conform to the timeframes in this Article.

3. Unless otherwise agreed to by the City and the Contractor in writing, the mediation conducted pursuant to this section shall excuse any further obligation under Section 20104.4 to mediate after litigation has been commenced.

4. The mediation shall be held no earlier than the date the Contractor completes the Work or the date that the Contractor last performs Work, whichever is earlier. All unresolved Claims shall be considered jointly in a single mediation, unless a new unrelated Claim arises after mediation is completed.

H. Procedures After Mediation. If following the mediation, the Claim or any portion remains in dispute, the Contractor must file a Claim pursuant to Chapter 1 (commencing with Section 900) and Chapter 2 (commencing with Section 910) of Part 3 of Division 3.6 of Title 1 of the Government Code prior to initiating litigation.

For purposes of those provisions, the running of the period of time within which a Claim must be filed shall be tolled from the time the Contractor submits his or her written Claim pursuant to subdivision (a) until the time the Claim is denied, including any period of time utilized by the meet and confer conference.

I. Civil Actions. The following procedures are established for all civil actions filed to resolve Claims of $375,000 or less:

1. Within 60 Days, but no earlier than 30 Days, following the filing or responsive pleadings, the court shall submit the matter to non-binding mediation unless 212
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waived by mutual stipulation of both parties or unless mediation was held prior to commencement of the action in accordance with Public Contract Code section 9204 and the terms of this Contract. The mediation process shall provide for the selection within 15 Days by both parties of a disinterested third person as mediator, shall be commenced within 30 Days of the submittal, and shall be concluded within 15 Days from the commencement of the mediation unless a time requirement is extended upon a good cause showing to the court.

2. If the matter remains in dispute, the case shall be submitted to judicial arbitration pursuant to Chapter 2.5 (commencing with Section 1141.10) of Title 3 of Part 3 of the Code of Civil Procedure, notwithstanding Section 1114.11 of that code. The Civil Discovery Act of 1986 (Article 3 (commencing with Section 2016) of Chapter 3 of Title 3 of Part 4 of the Code of Civil Procedure) shall apply to any proceeding brought under this subdivision consistent with the rules pertaining to judicial arbitration. In addition to Chapter 2.5 (commencing with Section 1141.10) of Title 3 of Part 3 of the Code of Civil Procedure, (A) arbitrators shall, when possible, be experienced in construction law, and (B) any party appealing an arbitration award who does not obtain a more favorable judgment shall, in addition to payment of costs and fees under that chapter, also pay the attorney’s fees on appeal of the other party.

J. Government Code Claim Procedures.

1. This Article does not apply to tort claims and nothing in this Article is intended nor shall be construed to change the time periods for filing tort claims or actions specified by Chapter 1 (commending with Section 900) and Chapter 2 (commencing with Section 910) of Part 3 of Division 3.5 of Title 1 of the Government Code.

2. In addition to any and all requirements of the Contract Documents pertaining to notices of and requests for adjustment to the Contract Time, Contract Price, or compensation or payment for Additional Work, disputed Work, construction claims and/or changed conditions, the Contractor must comply with the claim procedures set forth in Government Code Section 900, et seq. prior to filing any lawsuit against the City.

3. Such Government Code claims and any subsequent lawsuit based upon the Government Code claims shall be limited to those matters that remain unresolved after all procedures pertaining to adjustment of the Contract Time or Contract Price for Additional Work, disputed Work, construction claims, and/or changed conditions have been followed by Contractor. If Contractor does not comply with the Government Code claim procedure or the prerequisite contractual requirements, Contractor may not file any action against the City.

4. A Government Code claim must be filed no earlier than the date the Work is completed or the date the Contractor last performs Work on the Project, whichever occurs first. A Government Code claim shall be inclusive of all unresolved Claims known to Contractor or that should reasonably by known to Contractor excepting only new unrelated Claims that arise after the Government Code claim is submitted.
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K. Non-Waiver. The City’s failure to respond to a Claim from the Contractor within the time periods described in this Article or to otherwise meet the time requirements of this Article shall result in the Claim being deemed rejected in its entirety, and shall not constitute a waiver of any rights under this Article.

ARTICLE 10 - MEASUREMENT; PAYMENT

10.1 Cost Breakdown.

A. Lump Sum Work.

1. Contractor shall furnish on forms approved by the City within ten (10) Days of the Notice to Proceed, a schedule of values allocating the entire Contract Price to the various portions of the Work and prepared in such a form and supported by such data to substantiate its accuracy as the Engineer may require. This schedule of values, unless objected to by the Engineer, shall be used as a basis for reviewing the Contractor’s applications for payment. Contractor shall submit the schedule of values prior to submitting its first application for payment, and the City will not issue any payment until it receives and approves the schedule of values.

B. Unit Price Work.

1. Where the Contract Documents provide that all or part of the Work is to be Unit Price Work, initially the Contract Price will be deemed to include for all Unit Price Work an amount equal to the sum of the unit price for each separately identified item of Unit Price Work multiplied by the estimated quantity of each item as indicated in the Contract. The estimated quantities of items of Unit Price Work are not guaranteed and are solely for the purpose of comparison of Bids and determining an initial Contract Price. Each unit price will be deemed to include an amount considered by Contractor to be adequate to cover Contractor’s overhead and or profit for each separately identified item.

2. Unless otherwise specified, payment will be based on the actual quantities of Work as verified and approved by the Engineer, based on the price per unit as set forth in the Bid.

3. The City or Contractor may initiate a Change Order or Change Order Request to adjust the Contract Price in accordance with Contractor Documents based on actual quantities of Unit Price Work. The City or Contractor may make a claim for an adjustment in the Unit Price in accordance with the Contract Documents if:
a. the quantity of any item of Unit Price Work performed by Contractor differs by twenty-five percent (25%) or more from the estimated quantity of such item indicated in the Contract; and
b. there is no corresponding adjustment with respect to any other item of Work; and c. Contractor believes that Contractor is entitled to an increase in unit price as a result of having incurred additional expense or the City believes that the City is entitled to a decrease in unit price and the parties are unable to agree as to the amount of any such increase or decrease.
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10.2 Progress Estimates and Payment.

A. By the tenth (10th) Day of the following calendar month, Contractor shall submit to Engineer a payment request which shall set forth in detail the value of the Work done for the period beginning with the date Work was first commenced and ending on the end of the calendar month for which the payment request is prepared. Contractor shall include an adjusted list of actual quantities, verified by the Engineer, for unit price items listed, if any, in the Bid. Contractor shall include any amount earned for authorized Additional Work. Contractor shall certify under penalty of perjury, that all cost breakdowns and periodic estimates accurately reflect the Work on the Project.

B. From the total thus computed, a deduction shall be made in the amount of five percent (5%) for retention, except where the City has adopted a finding that the Work done under the Contract is substantially complex, and then the amount withheld as retention shall be the percentage specified in the Notice Inviting Bids. From the remainder a further deduction may be made in accordance with Section C below.

The amount computed, less the amount withheld for retention and any amounts withheld as set forth below, shall be the amount of the Contractor’s payment request.

C. The City may withhold a sufficient amount or amounts of any payment or payments otherwise due to Contractor, as in its judgment may be necessary to cover:

1. Payments which may be past due and payable for just claims against Contractor or any Subcontractors for labor or materials furnished in and about the performance of work on the Project under this Contract.

2. Defective work not remedied.

3. Failure of Contractor to make proper payments to his Subcontractor or for material or labor.

4. Completion of the Contract if there is a reasonable doubt that the Work can be completed for balance then unpaid.

5. Damage to another contractor or a third party.

6. Amounts which may be due the Count for claims against Contractor.

7. Failure of Contractor to keep the Record Drawings up to date.

8. Failure to provide update on construction schedule as required herein.

9. Site cleanup.

10. Failure to comply with Contract Documents.

11. Liquidated damages.

12. Legally permitted penalties.
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D. The City may apply such withheld amount or amounts to payment of such claims or obligations at its discretion with the exception of subsections (C)(1), (3), and (5) of this Article, which must be retained or applied in accordance with applicable law. In so doing, the City shall be deemed the agent of Contractor and any payment so made by the City shall be considered as a payment made under contract by the City to Contractor and the City shall not be liable to Contractor for such payments made in good faith. Such payments may be made without prior judicial determination of claim or obligations. The City will render Contractor a proper accounting of such funds disbursed on behalf of Contractor.

E. Upon receipt, the Engineer shall review the payment request to determine whether it is undisputed and suitable for payment. If the payment request is determined to be unsuitable for payment, it shall be returned to Contractor as soon as practicable but not later than seven (7) Days after receipt, accompanied by a document setting forth in writing the reasons why the payment request is not proper. The City shall make the progress payment within 30 Days after the receipt of an undisputed and properly submitted payment request from Contractor, provided that a release of liens and claims has been received from the Contractor pursuant to Civil Code section 8132. The number of days available to the City to make a payment without incurring interest pursuant to this paragraph shall be reduced by the number of Days by which the Engineer exceeds the seven (7) Day requirement.

F. A payment request shall be considered properly executed if funds are available for payment of the payment request and payment is not delayed due to an audit inquiry by the financial officer of the City.

G. The City shall have the right to adjust any estimate of quantity and to subsequently correct any error made in any estimate for payment.

10.3 Final Acceptance and Payment
A. Following the City’s acceptance of the Work, the Contractor shall submit to the City a written statement of the final quantities of unit price items for inclusion in the final payment request. The City shall have the right to adjust any estimate of quantity and to correct any error made in any estimate for payment.

B. When the Work has been accepted there shall be paid to Contractor a sum equal to the Contract Price less any amounts previously paid Contractor and less any amounts withheld by the City from Contractor under the terms of the Contract. The final five percent (5%), or the percentage specified in the Notice Inviting Bids where the City has adopted a finding of substantially complete, shall not become due and payable until as required by Public Contract Code section 7107. If the Contractor has placed securities with the City as described herein, the Contractor shall be paid a sum equal to one hundred percent (100%) of the Contract Price less any amounts due the City under the terms of the Contract.

C. Unless Contractor advises the City in writing prior to acceptance of the final five percent (5%) or the percentage specified in the Notice Inviting Bids where the City has adopted a finding of completion, or the return of securities held as described herein, said acceptance shall operate as a release to the City of all claims and all 216
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liability to Contractor for all things done or furnished in connection with this Work and for every act of negligence of the City and for all other claims relating to or arising out of this Work. If Contractor advises the City in writing prior to acceptance of final payment or return of the securities that there is a dispute regarding the amount due the Contractor, the City may pay the undisputed amount contingent upon the Contractor furnishing a release of all undisputed claims against the City with the disputed claims in stated amounts being specifically excluded by Contractor from the operation of the release. No payments, however, final or otherwise, shall operate to release Contractor or its sureties from the Faithful Performance Bond, Labor and Material Payment Bond, or from any other obligation under this Contract.

D. In case of suspension of the Contract any unpaid balance shall be and become the sole and absolute property of the City to the extent necessary to repay the City any excess in the cost of the Work above the Contract Price.

E. Final payment shall be made no later than 60 Days after the date of acceptance of the Work by the City or the date of occupation, beneficial use and enjoyment of the Work by the City including any operation only for testing, start-up or commissioning accompanied by cessation of labor on the Work, provided that a release of liens and claims has been received from the Contractor pursuant to Civil Code section 8136.

In the event of a dispute between the City and the Contractor, the City may withhold from the final payment an amount not to exceed 150% of the disputed amount.

F. Within ten (10) Days from the time that all or any portion of the retention proceeds are received by Contractor, Contractor shall pay each of its Subcontractors from whom retention has been withheld each Subcontractor’s share of the retention received. However, if a retention payment received by Contractor is specifically designated for a particular Subcontractor, payment of the retention shall be made to the designated Subcontractor if the payment is consistent with the terms of the subcontract.

ARTICLE 11 -MISCELLANEOUS

11.1 Patents.

A. Contractor shall hold and save the City, officials, officers, employees, and authorized volunteers harmless from liability of any nature or kind of claim therefrom including costs and expenses for or on account of any patented or unpatented invention, article or appliance manufactured, furnished or used by Contractor in the performance of this Contract.

11.2 Document Retention & Examination
A. In accordance with Government Code section 8546.7, records of both the City and the Contractor shall be subject to examination and audit by the State Auditor General for a period of three (3) years after final payment.

B. Contractor shall make available to the City any of the Contractor’s other documents related to the Project immediately upon request of the City. 217
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C. In addition to the State Auditor rights above, the City shall have the right to examine and audit all books, estimates, records, contracts, documents, bid documents, subcontracts, and other data of the Contractor (including computations and projections) related to negotiating, pricing, or performing the modification in order to evaluate the accuracy and completeness of the cost or pricing data at no additional cost to the City, for a period of four (4) years after final payment.

11.3 Notice.

A. All notices shall be in writing and either served by personal delivery or mailed to the other party. Written notice to the Contractor shall be addressed to Contractor’s principal place of business unless Contractor designates another address in writing for service of notice. Notice to the City shall be addressed to the City as designated in the Notice Inviting Bids unless the City designates another address in writing for service of notice. Notice shall be effective upon receipt or five (5) Days after being sent by first class mail, whichever is earlier. Notice given by facsimile shall not be effective unless acknowledged in writing by the receiving party.

11.4 Notice of Third Party Claims
A. Pursuant to Public Contract Code section 9201, the City shall provide the Contractor with timely notification of the receipt of any third-party claims relating to the Contract.

The City is entitled to recover reasonable costs incurred in providing such notification.

11.5 State License Board Notice
A. Contractors are required by law to be licensed and regulated by the Contractors’ State License Board which has jurisdiction to investigate complaints against contractors if a complaint regarding a patent act or omission is filed within four (4) years of the date of the alleged violation. A complaint regarding a latent act or omission pertaining to structural defects must be filed within ten (10) years of the date of the alleged violation. Any questions concerning a contractor may be referred to the Registrar, Contractors’ State License Board, P.O. Box 26000, Sacramento, California 95826.

11.6 Assignment of Contract
A. Contractor shall not assign, transfer, convey, sublet or otherwise dispose of the rights or title of interest of any or all of this contract without the prior written consent of the City. Any assignment or change of Contractor’s name of legal entity without the written consent of the City shall be void. Any assignment of money due or to become due under this Contract shall be subject to a prior lien for services rendered or material supplied for performance of Work called for under the Contract Documents in favor of all persons, firms, or corporations rendering such services or supplying such materials to the extent that claims are filed pursuant to the Civil Code, the Code of Civil Procedure or the Government Code.
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11.7 Change In Name And Nature Of Contractor’s Legal Entity.

A. Should a change be contemplated in the name or nature of the Contractor’s legal entity, the Contractor shall first notify the City in order that proper steps may be taken to have the change reflected on the Contract and all related documents. No change of Contractor’s name or nature will affect the City’s rights under the Contract, including but not limited to the bonds.

11.8 Prohibited Interests
A. No City official or representative who is authorized in such capacity and on behalf of City to negotiate, supervise, make, accept, or approve, or to take part in negotiating, supervising, making, accepting or approving any engineering, inspection, construction or material supply contract or any subcontract in connection with construction of the project, shall be or become directly or indirectly interested financially in the Contract.

11.9 Controlling Law
A. Notwithstanding any subcontract or other contract with any subcontractor, supplier, or other person or organization performing any part of the Work, this Contract shall be governed by the law of the State of California excluding any choice of law provisions.

11.10 Jurisdiction; Venue
A. Contractor and any subcontractor, supplier, or other person or organization performing any part of the Work agrees that any action or suits at law or in equity arising out of or related to the bidding, award, or performance of the Work shall be maintained in the Superior Court of San Bernardino County, California, and expressly consent to the jurisdiction of said court, regardless of residence or domicile, and agree that said court shall be a proper venue for any such action.

11.11 Cumulative Remedies.

A. The duties and obligations imposed by these General Conditions and the rights and remedies available hereunder to the parties hereto are in addition to, and are not to be construed in any way as a limitation of, any rights and remedies available to any or all of them which are otherwise imposed or available by Applicable Laws, by special warranty or guarantee, or by other provisions of the Contract Documents.

The provisions of this Article will be as effective as if repeated specifically in the Contract Documents in connection with each particular duty, obligation, right, and remedy to which they apply.

11.12 Survival of Obligations.

A. All representations, indemnifications, warranties, and guarantees made in, required by, or given in accordance with the Contract Documents, as well as all continuing obligations indicated in the Contract Documents, will survive final payment, completion, and acceptance of the Work or termination or completion of the Contract or termination of the services of Contractor.
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11.13 Headings.

A. Article and paragraph headings are inserted for convenience only and do not constitute parts of these General Conditions.

11.14 Assignment of Antitrust Actions
A. In accordance with §7103.5(b) of the California Public Contract Code, Contractor and Subcontractors must conform to the following requirements:

1. In entering into a public works contract or a subcontract to supply goods, services, or materials pursuant to a public works contract, Contractor or Subcontractor offer and agree to assign to the awarding body all rights, title, and interest in and to all causes of action it may have under §4 of the Clayton Act (15 U.S.C. Sec. 15) or under the Cartwright Act (Chapter 2 (commencing with §16700) of Part 2 of Division 7 of the Business and Professions Code) arising from purchases of goods, services, or materials pursuant to the public works contract or the subcontract.

2. This assignment must be made and become effective at the time the awarding body tenders to Contractor, without further acknowledgment by the parties.

11.15 All Legal Provisions Included
A. Contractor shall give all notices and comply with all federal, state and local laws, ordinances, rules and regulations bearing on conduct of work as indicated and specified by their terms. References to specific laws, rules or regulations in this Contract are for reference purposes only, and shall not limit or affect the applicability of provisions not specifically mentioned. If Contractor observes that drawings and specifications are at variance therewith, he shall promptly notify City in writing and any necessary changes shall be adjusted as provided for in this Contract for changes in Work. If Contractor performs any Work knowing it to be contrary to such laws, ordinances, rules and regulations, and without such notice to City, he shall bear all costs arising therefrom.

B. Contractor shall be responsible for familiarity with the Americans with Disabilities Act (“ADA”) (42 U.S.C. § 12101 et seq.). The Work will be performed in compliance with ADA laws, rules and regulations. Contractor shall comply with the Historic Building Code, including, but not limited to, as it relates to the ADA, whenever applicable.

C. Contractor acknowledges and understands that, pursuant to Public Contract Code section 20676, sellers of "mined material" must be on an approved list of sellers published pursuant to Public Resources Code section 2717(b) in order to supply mined material for this Contract.

D. No City official or representative who is authorized in such capacity and on behalf of City to negotiate, supervise, make, accept, or approve, or to take part in negotiating, supervising, making, accepting or approving any engineering, inspection, construction or material supply contract or any subcontract in connection with construction of the Work, shall be or become directly or indirectly interested financially in the Contract.
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E. All provisions of law required to be inserted in the Contract or Contract Documents pursuant to any Applicable Laws shall be and are inserted herein. If through mistake, neglect, oversight, or otherwise, any such provision is not herein inserted or inserted in improper form, upon the application of either party, the Contract or Contract Documents shall be changed by City, at no increase in Contract Price or extension in Contract Times, so as to strictly comply with the Applicable Laws and without prejudice to the rights of either party hereunder.
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SECTION 00750 – SPECIAL CONDITIONS
ARTICLE 1 -SCOPE OF WORK

1.1 Location of the Project.

A. Armstrong Community Center 1265 S Palmetto Avenue Ontario Ca 91762

1.2 Scope of Work.

1.3 Approved set of plans (Permit # B20240378) uploaded on Planetbids

END OF SPECIAL CONDITIONS
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TECHNICAL SPECIFICATIONS
"THE FOLLOWING SPECIFICATIONS ARE INCORPORATED HEREIN BY REFERENCE AS IF SET FORTH IN THEIR ENTIRETY:

DIVISION 07 - THERMAL AND MOISTURE PROTECTION
074113.04 Metal Roof Panels, Standing Seam (T-238)
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SECTION 074113.04 - METAL ROOF PANELS, STANDING SEAM
PART 1 - GENERAL

1.1 SUMMARY
A. Section Includes:

1. Architectural Standing-seam metal roof panels.

2. Metal roof accessories.

3. Substrate boards.

4. Underlayments.

1.2 DEFINITIONS
A. Roofing Terminology: Refer to ASTM D1079 "Standard Terminology Relating to Roofing and Waterproofing" and glossary in applicable edition of NRCA's "The NRCA Roofing Manual:

Metal Panel and SPF Roof Systems" for definition of terms related to roofing work in this Section.

B. Metal Roof Panel Assembly: Metal roof panels, attachment system components, miscellaneous metal framing, thermal insulation, and accessories necessary for a complete weathertight roofing system.

1.3 PREINSTALLATION MEETINGS
A. Preinstallation Conference: Conduct conference at Project site.

1. Meet with Owner, Architect, Owner's insurer if applicable, testing and inspecting agency representative, metal roof panel Installer, metal roof panel manufacturer's representative, substrate Installer, and installers whose work interfaces with or affects metal roof panels including installers of roof accessories and roof-mounted equipment.

2. Review and finalize construction schedule and verify availability of materials, Installer's personnel, equipment, and facilities needed to make progress and avoid delays.

3. Review methods and procedures related to metal roof panel installation, including manufacturer's written instructions.

4. Examine substrate conditions for compliance with requirements, including flatness and attachment to structural members.

5. Review structural loading limitations of deck during and after roofing.

6. Review flashings, special roof details, roof drainage, roof penetrations, equipment curbs, and condition of other construction that will affect metal roof panels.

7. Review governing regulations and requirements for insurance, certificates, and testing and inspecting if applicable.
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8. Review temporary protection requirements for metal roof panel assembly during and after installation.

9. Review roof observation and repair procedures after metal roof panel installation.

10. Document proceedings, including corrective measures and actions required, and furnish copy of record to each participant.

1.4 ACTION SUBMITTALS
A. Product Data: For each type of product indicated.

1. Include construction details, material descriptions, dimensions of individual components and profiles, and finishes for each type of panel and accessory.

B. Shop Drawings: Show fabrication and installation layouts of metal roof panels; details of edge conditions, side-seam and endlap joints, panel profiles, corners, anchorages, trim, flashings, closures, and accessories; and special details. Indicate point of fixity of metal panels. Distinguish between factory- and field-assembled work.

1. Accessories: Include details of the flashing, trim, and anchorage systems, at a scale of not less than 1-1/2 inches per 12 inches (1:10); Include details of the following items:
a. Flashing and trim.
b. Pipe penetration flashings.
c. Roof curbs.
d. Gutters.
e. Downspouts.

2. Shop Drawings for Snow Guards: By snow guard manufacturer. Show fabrication and installation layouts and attachment to other construction.

C. Delegated-Design Submittal: For metal roof panel assembly indicated to comply with performance requirements and design criteria, including analysis data signed and sealed by a qualified professional engineer responsible for their preparation. Include the following:

1. Structural analysis data indicating compliance with Performance Requirements Article.

2. Include miscellaneous metal framing components, layout, and fastening.

D. Samples for Initial Selection: For each type of metal roof panel indicated with factory-applied color finishes.

1. Include similar Samples of trim and accessories involving color selection.

E. Samples for Verification: For each type of exposed finish required, prepared on Samples of size indicated below:
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1. Metal Roof Panels: 12 inches (300 mm) long by actual panel width. Include fasteners, clips, trim, closures, and other metal roof panel accessories.

1.5 INFORMATIONAL SUBMITTALS
A. Qualification Data: For Installer.

1. Submit Installer qualifications in the form of an original letter on manufacturer's letterhead signed by authorized manufacturer representative.

B. Material Certificates: For thermal insulation, from manufacturer.

C. Compliance Certificate: For State of Florida product approval.

D. Notice of Acceptance: For Miami Dade County product approval.

E. Field Quality Control Reports.

1.6 CLOSEOUT SUBMITTALS
A. Maintenance Data: For metal roof panels to include in maintenance manuals.

B. Warranties: Executed copies of warranties.

1.7 QUALITY ASSURANCE
A. Manufacturer Qualifications: A manufacturer of plant-fabricated metal roof panel systems listed in this Section and meeting performance requirements, with a minimum of five years' experience providing metal roof panel systems for projects of similar type and scope, offering warranty, technical inspection, and maintenance inspection services specified.

B. Installer Qualifications: An employer of workers trained and certified by manufacturer, including a full-time on-site supervisor with a minimum of five years' experience installing similar work, able to communicate verbally with Contractor, Architect, and employees, and qualified by the manufacturer to furnish warranty of type specified.

C. UL-Certified, Portable Roll-Forming Equipment: UL-certified, portable roll-forming equipment capable of producing metal panels warranted by manufacturer to be the same as factory-formed products. Maintain UL certification of portable roll-forming equipment for duration of work.

1. Manufacturer's On-Site Roll Former Operators: Experienced full-time employees of metal roof panel manufacturer.

D. Manufacturer's Technical Representative Qualifications: An authorized full-time employee representative of manufacturer, certified as a Registered Roof Observer (RRO) by the International Institute of Building Envelope Consultants (IIBEC) formerly the Roof Consultants Institute (RCI), and experienced in the installation and maintenance of the specified roof panel system and qualified to determine Installer's compliance with the requirements of this Project. 226
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1.8 DELIVERY, STORAGE, AND HANDLING
A. Deliver components, sheets, metal roof panels, and other manufactured items so as not to be damaged or deformed. Package metal roof panels for protection during transportation and handling.

B. Unload, store, and erect metal roof panels in a manner to prevent bending, warping, twisting, and surface damage.

C. Stack metal roof panels on platforms or pallets, covered with suitable weathertight and ventilated covering. Store metal roof panels to ensure dryness. Do not store metal roof panels in contact with other materials that might cause staining, denting, or other surface damage.

D. Protect strippable protective covering on metal roof panels from exposure to sunlight and high humidity, except to extent necessary for period of metal roof panel installation.

1.9 PROJECT / FIELD CONDITIONS
A. Weather Limitations: Proceed with installation only when existing and forecasted weather conditions permit metal roof panel work to be performed according to manufacturer's written instructions and warranty requirements.

B. Field Measurements: Verify actual dimensions of construction contiguous with metal roof panels by field measurements before fabrication.

1.10 COORDINATION
A. Coordinate sizes and locations of roof curbs, equipment supports, and roof penetrations with actual equipment provided.

B. Coordinate metal roof panels with rain drainage work, flashing, trim, and construction of substrate, parapets, walls, and other adjoining work to provide a leakproof, secure, and noncorrosive installation.

1.11 WARRANTY
A. Manufacturer's Warranty: Roof System Manufacturer's standard form in which Manufacturer agrees to repair or replace components of roofing system that fail in materials or workmanship within warranty period, as follows.

1. Form of Warranty: Manufacturer's standard warranty form.

2. Scope of Warranty: Work of this Section and including sheet metal details and termination details installed by the roof system Installer and approved by the Roof System Manufacturer.

3. Warranty Period: 20 years from date of completion.
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PART 2 - PRODUCTS

2.1 MANUFACTURERS
A. Basis of Design: The roof system specified in this Section is based upon products of Tremco CPG Inc, Beachwood, OH, (800) 562-2728, www.tremcoroofing.com that are named in other Part 2 articles. Provide specified products.

B. Source Limitations: Obtain components for roofing system from same manufacturer as membrane roofing or manufacturer approved by membrane roofing manufacturer.

2.2 PERFORMANCE REQUIREMENTS
A. General Performance: Metal roof panels shall comply with performance requirements without failure due to defective manufacture, fabrication, installation, or other defects in construction.

B. Roofing System Design: Provide metal roof panel assembly that is identical to systems that have been successfully tested by a qualified testing and inspecting agency in accordance with ANSI/FM 4471, UL 580, or UL 1897, and to resist uplift pressures calculated in accordance with ASCE-7 and applicable code.

C. Hail Resistance: Provide metal roof panel assemblies listed with UL as Class 4 hail resistant panels.

D. Hydrostatic-Head Resistance: No water penetration when tested according to ASTM E2140.

1. Test-Pressure Difference: 12.00 lbf/sq. ft. (575 Pa).

E. Thermal Movements: Allow for thermal movements from ambient and surface temperature changes by preventing buckling, opening of joints, overstressing of components, failure of joint sealants, failure of connections, and other detrimental effects. Base calculations on surface temperatures of materials due to both solar heat gain and nighttime-sky heat loss.

1. Temperature Change (Range): 120 deg F (67 deg C), ambient; 180 deg F (100 deg C), material surfaces.

F. Exterior Fire-Test Exposure: UL 790/ASTM E108, Class A; for application and roof slopes indicated, as determined by testing identical membrane roofing materials by a qualified testing agency. Materials shall be identified with appropriate markings of applicable testing agency.

2.3 STANDING-SEAM METAL ROOF PANELS
A. Provide factory-formed metal roof panels designed to be installed by lapping and interconnecting raised side edges of adjacent panels with joint type indicated and mechanically attaching panels to supports using concealed clips in side laps. Include clips, cleats, pressure plates, and accessories required for weathertight installation.

1. Steel Panel Systems: Unless more stringent requirements are indicated, comply with ASTM E1514.

B. Vertical-Rib, Seamed-Joint, Standing-Seam Metal Roof Panels: Factory-formed symmetrical panels with vertical ribs at panel edges and flat pan between ribs; designed for sequential 228
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installation in either direction by mechanically attaching panels to supports using concealed clips located under one side of panels and engaging opposite edge of adjacent panels, and mechanically seaming panels together utilizing a seam cap, and configured to enable future replacement of individual panels without disturbing adjacent panels.

1. Basis-of-Design Product: Tremco, TremLock T-238.

2. Aluminum-Zinc Alloy-Coated Steel Sheet: ASTM A792/A792M, Class AZ50 coating designation, Grade 50 (Class AZM150 coating designation, Grade 340), prepainted by the coil-coating process to comply with ASTM A755/A755M; structural quality. a. Thickness: 0.0236-inch/24 ga. (0.71-mm) minimum thickness. b. Surface: Smooth, flat finish.
c. Exposed Coil-Coated Finish: High-performance organic coating. 1) Color: As selected from manufacturer's full range.
d. Exposed Finish: Exposed metallic coating.

3. Joint Type: Field mechanically seamed, with continuous factory-applied sealant.

4. Seam Cap: Match panel material and finish; provide with two rows of integral factory hotapplied sealant.

5. Panel Shape: Flat.

6. Panel Pan Configuration: Plank and Pencil Ribbed.

7. Panel Seam Height: Not less than 2-3/8 inch (60.3 mm).

8. Panel Coverage: 16 inches (406 mm).

9. Eave Notch: Factory-formed.

10. Clips: Fixed Clips that accommodate thermal movement. Continuous clips where required to meet performance requirements. Bearing plates where required. a. Material: zinc-coated (galvanized) or aluminum-zinc alloy-coated steel sheet. 0.064- inch/16 ga. (1.63-mm) nominal thickness for individual clips, or 0.0236-inch/24 ga. (0.71-mm) nominal thickness for continuous clips.

2.4 METAL ROOF ACCESSORIES
A. Metal Roof Accessories, General: Provide components approved by roof panel manufacturer and as required for a complete metal roof panel assembly including trim, copings, fasciae, corner units, ridge closures, clips, flashings, sealants, gaskets, fillers, closure strips, and similar items.

Match material and finish of metal roof panels unless otherwise indicated.

1. Closures: Provide closures at eaves and ridges, fabricated of same metal as metal roof panels.
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2. Closure Strips: Closed-cell, expanded, cellular, rubber or crosslinked, polyolefin-foam or closed-cell laminated polyethylene; minimum 1-inch- (25-mm-) thick, flexible closure strips; cut or premolded to match metal panel profile. Provide closure strips where indicated or necessary to ensure weathertight construction.

B. Panel Sealants: Provide one of the following identical to that used in test panels meeting performance requirements:

1. Sealant Tape: Pressure-sensitive, 99 percent solids, gray polyisobutylene or butyl rubber compound sealant tape with release-paper backing. Provide permanently elastic, nonsag, nontoxic, nonstaining tape 1 inch (25 mm) wide and 1/8 inch (3 mm) thick, with nylon spacer beads to prevent overcompression of the sealant tape.

2. Butyl-Rubber-Based, Solvent-Release Sealant: ASTM C1311, with nylon spacer beads to prevent overcompression of the sealant tape.

C. Flashing and Trim: Provide flashing and trim formed from same material as metal panels, and as required to seal against weather and to provide finished appearance. Locations include, but are not limited to, eaves, rakes, corners, bases, framed openings, ridges, fasciae, and fillers. Finish flashing and trim with same finish system as adjacent metal panels.

1. Basis of Design Product: Tremco, TremLock Sheet.

D. Gutters: Formed from same material roof panels. Match profile of gable trim, complete with end pieces, outlet tubes, and other special pieces as required. Fabricate in minimum 96-inch- (2400- mm-) long sections, of size and metal thickness according to SMACNA's "Architectural Sheet Metal Manual." Furnish gutter supports spaced a maximum of 36 inches (900 mm) o.c., fabricated from same metal as gutters. Provide wire ball strainers of compatible metal at outlets. Finish gutters to match metal roof panels.

E. Downspouts: Formed from same material as roof panels. Fabricate in 10-foot- (3-m-) long sections, complete with formed elbows and offsets, of size and metal thickness according to SMACNA's "Architectural Sheet Metal Manual." Finish downspouts to match gutters.

F. Pipe Penetration Flashings: Flexible boot type, with stainless-steel compression ring, and stainless-steel pipe strap. Use silicone-type boot at hot pipes.

G. Roof Curbs: Fabricated from aluminum sheet, minimum 0.080-inch- (1.2-mm-) thick; with bottom of skirt profiled to match roof panel profiles, and welded top box, integral internal fastener flange, and water diverter. Fabricate curb subframing of minimum 0.0598-inch- (1.5-mm-) thick, angle-, C-, or Z-shaped galvanized steel sheet. Fabricate curb and subframing to withstand indicated loads, of size and height indicated. Finish roof curbs to match metal roof panels.

1. Insulate roof curb with 1-inch- (25-mm-) thick, rigid insulation.

2.5 SUBSTRATE BOARDS
A. Gypsum panel, glass-mat-faced, primed, ASTM C1177/C1177M.

1. Basis of design product: Tremco/GP Gypsum DensDeck Prime. 230
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2. Thickness: 1/2 inch (12 mm).

B. Substrate-Board Fasteners: Factory-coated steel fasteners and metal or plastic plates complying with corrosion-resistance provisions in FMG 4470, designed for fastening substrate board to substrate.

2.6 UNDERLAYMENT MATERIALS
A. Self-Adhering, High-Temperature Underlayment: Self-adhering, cold-applied, sheet underlayment, consisting of slip-resistant, woven polymer surface laminated to a modified bitumen adhesive compound, with silicon coated split-release film backing. Provide primer when recommended by underlayment manufacturer.

1. Basis of design product: Self-Adhering High-Temperature Underlayment (Tremco SA).

2. Basis of Design Product: Tremco, SA.

3. Nominal Thickness: 40 mils (1.0 mm).

4. Tensile Strength, ASTM D1970: MD- 80 lbs/in. (14 kN/m); XMD - 30 lbs/in. (10.5 kN/m).

5. Tear Resistance, ASTM D1970: MD - 60 lbf (267 kN/m); XMD - 40 lbf (178 kN/m).

6. Elongation, ASTM D1970: MD - 70 percent; XMD 60 percent.

7. Nail Sealability, ASTM D1970: Pass.

8. Thermal Stability, ASTM D1970: Pass; Stable after testing at 225 deg F (107 deg C).

9. Low Temperature Flexibility, ICC AC 48: Pass.

10. Permeance, maximum, ASTM E96: 0.03 perms; (1.72 ng/Pa x s x sq m).

11. Adhesion to Plywood, ASTM D903: 5 lbf at 40 deg F (0.04 kN/m at 4.4 deg C) , 12 lbf at 75 deg F (0.08 kN/m at 23.9 deg C).

2.7 MISCELLANEOUS MATERIALS
A. Panel Fasteners: Self-tapping screws, bolts, nuts, self-locking rivets and bolts, end-welded studs, and other suitable fasteners designed to withstand design loads. Provide exposed fasteners with heads matching color of metal roof panels by means of plastic caps or factory-applied coating.

Provide EPDM, PVC, or neoprene sealing washers.

2.8 FABRICATION
A. Fabricate and finish metal roof panels and accessories at the factory to greatest extent possible, by manufacturer's standard procedures and processes and as necessary to fulfill indicated performance requirements. Comply with indicated profiles and with dimensional and structural requirements.

1. Site-rolled fabrication of panels or shop-rolling of panels using fixed equipment designed for site-rolling applications does not meet the requirements of this Section. 231
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B. Fabricate metal panels with joints between panels designed to form weathertight seals.

C. Provide panel profile, including major ribs and intermediate stiffening ribs, if any, for full length of panel.

D. Sheet Metal Flashing and Trim: Fabricate flashing and trim to comply with manufacturer's recommendations and recommendations in SMACNA's "Architectural Sheet Metal Manual" that apply to design, dimensions, metal, and other characteristics of item indicated.

1. Form exposed sheet metal accessories that are without excessive oil canning, buckling, and tool marks and that are true to line and levels indicated, with exposed edges folded back to form hems.

2. Seams and Sealed Joints for Sheet Metal Accessories:
a. Seams for Steel: Fabricate nonmoving seams in accessories with flat-lock seams.

Tin edges to be seamed, form seams, and solder.
b. Sealed Joints: Form nonexpansion, but movable, joints in metal to accommodate sealant and to comply with SMACNA standards.

3. Conceal fasteners and expansion provisions where possible. Exposed fasteners are not allowed on faces of accessories exposed to view.

4. Fabricate cleats and attachment devices from same material as accessory being anchored or from compatible, noncorrosive metal recommended in writing by metal panel manufacturer.
a. Size: As recommended by SMACNA's "Architectural Sheet Metal Manual" or metal panel manufacturer for application, but not less than thickness of metal being secured.

2.9 FINISHES
A. Comply with NAAMM's "Metal Finishes Manual for Architectural and Metal Products" for recommendations for applying and designating finishes.

B. Protect mechanical and painted finishes on exposed surfaces from damage by applying a strippable, temporary protective covering before shipping.

C. Appearance of Finished Work: Noticeable variations in same piece are not acceptable. Variations in appearance of adjoining components are acceptable if they are within the range of approved Samples and are assembled or installed to minimize contrast.

D. High-Performance Organic Coating for Steel Panels and Accessories:

1. Two-Coat Fluoropolymer: AAMA 621 (steel) / AAMA 2605 (aluminum). Fluoropolymer finish containing not less than 70 percent PVDF resin by weight in color coat. Prepare, pretreat, and apply coating to exposed metal surfaces to comply with coating and resin manufacturers' written instructions.
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PART 3 - EXECUTION

3.1 EXAMINATION
A. Examine substrates, areas, and conditions, with Installer present, for compliance with requirements for installation tolerances, metal roof panel supports, and other conditions affecting performance of the Work.

1. Examine solid roof substrate to verify that substrate joints are supported by framing or blocking and that installation is within flatness tolerances required by metal roof panel manufacturer.
a. Verify that air- or water-resistive barriers have been installed over sheathing or backing substrate to prevent air infiltration or water penetration.

2. Examine roughing-in for components and systems penetrating metal roof panels to verify actual locations of penetrations relative to seam locations of metal roof panels before metal roof panel installation.

3. For the record, prepare written report, endorsed by Installer, listing conditions detrimental to performance of the Work.

4. Proceed with installation only after unsatisfactory conditions have been corrected.

3.2 PREPARATION
A. Clean substrates of substances harmful to insulation, including removing projections capable of interfering with insulation attachment.

3.3 SUBSTRATE BOARD INSTALLATION
A. Substrate Board: Install substrate boards over roof substrate on entire roof surface. Attach with substrate-board fasteners.

1. Install substrate board with long joints in continuous straight lines, perpendicular to roof slopes with end joints staggered between rows. Tightly butt substrate boards together.

2. Comply with requirements for fire-rated construction.

3.4 UNDERLAYMENT INSTALLATION
A. Self-Adhering Sheet Underlayment: Apply primer if required by manufacturer. Comply with temperature restrictions of underlayment manufacturer for installation. Apply at locations indicated below, wrinkle free, in shingle fashion to shed water, and with end laps of not less than 6 inches (150 mm), staggered 24 inches (600 mm) between courses. Overlap side edges not less than 3-1/2 inches (90 mm). Extend underlayment into built-in gutter trough. Roll laps with roller.

Cover underlayment within 14 days.

1. Apply over entire roof surface.

B. Install flashings to cover underlayment.
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3.5 METAL ROOF PANEL INSTALLATION, GENERAL
A. Install metal roof panels according to manufacturer's written instructions in orientation, sizes, and locations indicated on Drawings.

B. Provide metal roof panels of full length from eave to ridge.

C. Thermal Movement. Rigidly fasten metal roof panels to structure at one and only one location for each panel. Allow remainder of panel to move freely for thermal expansion and contraction.

Predrill panels for fasteners.

1. Point of Fixity: Fasten each panel along a single line of fixing located at eave.

2. Avoid attaching accessories through roof panels in a manner that will inhibit thermal movement.

D. Install metal roof panels as follows:

1. Commence metal roof panel installation in presence of factory-authorized representative.

2. Field cutting of metal panels by torch or abrasive saw is not permitted.

3. Install panels perpendicular to supporting purlins.

4. Locate and space fastenings in uniform vertical and horizontal alignment.

5. Provide metal closures at rake edges, rake walls, and each side of ridge and hip caps.

6. Flash and seal metal roof panels with weather closures at eaves, rakes, and perimeter of all openings.

7. Install ridge and hip caps as metal roof panel work proceeds.

8. Install metal flashing to allow moisture to run over and off metal roof panels.

E. Fasteners: Use long-life fasteners, as recommend by panel manufacturer, for surfaces exposed to the exterior and galvanized steel fasteners for surfaces exposed to the interior.

F. Anchor Clips: Anchor metal roof panels and other components of the Work securely in place, using manufacturer's approved fasteners according to manufacturers' written instructions.

G. Metal Protection: Where dissimilar metals will contact each other or corrosive substrates, protect against galvanic action by painting contact surfaces with bituminous coating, by applying rubberized-asphalt underlayment to each contact surface, or by other permanent separation as recommended by metal roof panel manufacturer.

1. Use underlayment where roof panels will contact wood, ferrous metal, or cementitious construction.

H. Joint Sealers: Install gaskets, joint fillers, and sealants where indicated and where required for weatherproof performance of metal roof panel assemblies. Provide types of gaskets, fillers, and sealants indicated or, if not indicated, types recommended by metal roof panel manufacturer. 234
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1. Prepare joints and apply sealants to comply with ASTM C1193.

3.6 METAL ROOF PANEL INSTALLATION
A. Standing-Seam Metal Roof Panels: Fasten metal roof panels to substrate with concealed clips at each standing-seam joint at location, spacing, and with fasteners recommended by manufacturer.

1. Install clips to supports with self-tapping fasteners.

2. Install pressure plates at locations indicated in manufacturer's written installation instructions.

3. Seamed Joint: Crimp standing seams with manufacturer-approved, motorized seamer tool so clip, metal roof panel, and factory-applied sealant are completely engaged.

4. Watertight Installation:
a. Apply a continuous ribbon of sealant or tape to seal joints of metal panels, using sealant or tape as recommend in writing by manufacturer as needed to make panels watertight.
b. Provide sealant or tape between panels and protruding equipment, vents, and accessories.

3.7 ACCESSORY INSTALLATION
A. General: Install accessories with positive anchorage to building and weathertight mounting and provide for thermal expansion. Coordinate installation with flashings and other components.

1. Install components required for a complete metal roof panel assembly including trim, copings, ridge closures, seam covers, flashings, sealants, gaskets, fillers, closure strips, and similar items.

B. Flashing and Trim: Comply with performance requirements and manufacturer's written installation instructions. Provide concealed fasteners where possible, and set units true to line and level as indicated. Install work with laps, joints, and seams that will be permanently watertight and weather resistant.

1. Form trim and transition joints using compressed joints with captive butyl sealant capable of resisting static water pressure. Cleated joints and exposed joint sealants do not meet this requirement.

2. Install exposed flashing and trim that is without excessive oil canning, buckling, and tool marks and that is true to line and levels indicated, with exposed edges folded back to form hems. Install sheet metal flashing and trim to fit substrates and to result in waterproof and weather-resistant performance.

3. Expansion Provisions: Provide for thermal expansion of exposed flashing and trim. Space movement joints at a maximum of 10 feet (3 m) with no joints allowed within 24 inches (600 mm) of corner or intersection. Where lapped expansion provisions cannot be used or would not be sufficiently weather resistant and waterproof, form expansion joints of 235
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intermeshing hooked flanges, not less than 1 inch (25 mm) deep, filled with mastic sealant (concealed within joints).

C. Gutters: Join sections with riveted and soldered or lapped, riveted, and sealed joints. Attach gutters to eave with gutter hangers spaced not more than 36 inches (914 mm) o.c. using manufacturer's standard fasteners. Provide end closures and seal watertight with sealant. Provide for thermal expansion.

D. Downspouts: Join sections with telescoping joints. Provide fasteners designed to hold downspouts securely 1 inch (25 mm) away from walls; locate fasteners at top and bottom and at approximately 60 inches (1500 mm) o.c. in between.

1. Provide elbows at base of downspouts to direct water away from building.

2. Connect downspouts to underground drainage system indicated.

E. Roof Curbs: Install curbs at locations indicated on Drawings. Install flashing around bases where they meet metal roof panels.

F. Pipe Flashing: Form flashing around pipe penetration and metal roof panels. Fasten and seal to metal roof panels as recommended by manufacturer.

3.8 FIELD QUALITY CONTROL
A. Manufacturer’s Technical Representative: Engage a qualified manufacturer’s technical representative acceptable to Owner for a minimum of 15 full-time days on site to perform substrate examination, interim observations, and final roof inspections, and to prepare reports.

B. Remove and replace applications of metal roof panels where inspections indicate that they do not comply with specified requirements.

C. Additional inspections, at Contractor's expense, will be performed to determine compliance of replaced or additional work with specified requirements.

3.9 CLEANING
A. Remove temporary protective coverings and strippable films, if any, as metal roof panels are installed unless otherwise indicated in manufacturer's written installation instructions. On completion of metal roof panel installation, clean finished surfaces as recommended by metal roof panel manufacturer. Maintain in a clean condition during construction.

B. After metal roof panel installation, clear drainage channels of obstructions, dirt, and sealant.

C. Replace metal roof panels that have been damaged or have deteriorated beyond successful repair by finish touchup or similar minor repair procedures.

END OF SECTION 074113.04
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Department: Community Life and Culture
Prepared By: Danielle Guevara
Department:

Prepared By: Danielle Guevara
Staff Member Presenting: Helen McAlary,
Executive Director Community Life and Culture
Reviewed By: Lacey A Rightmer
Approved By:

COMPANY FOR BURGLARY ALARM SERVICES

CITY OF ONTARIO
Agenda Report
March 18, 2025
SECTION:

CONSENT CALENDAR
RECOMMENDATION: That the City Council approve and authorize the City Manager, or his designee, to execute Amendment No. 11 to the Maintenance Services Agreement with Bay Alarm Company, of Concord, California, for a total not-to-exceed amount of $1,530,547, for the alarm system upgrade, and a term to June 30, 2025.

THE FOLLOWING COUNCIL GOALS ARE BEING ACHIEVED:

Invest in the City's Infrastructure (Water, Streets, Sewers, Parks, Storm Drains and Public Facilities)
Maintain the Current High Level of Public Safety
FISCAL IMPACT: The proposed Amendment No. 11 to Bay Alarm Company increases the existing agreement by $17,000 for a revised total Agreement amount of $1,530,547. The Fiscal Year 2024-25 Adopted Budget includes appropriations from the General Fund to cover the cost of these services.

BACKGROUND & ANALYSIS: The City awarded Mijac Alarm, which later changed its name to Bay Alarm, a five-year contract for Security and Fire Alarm Monitoring Services in July 2020. A number of amendments have followed to address the needs at citywide facilities.

To enhance safety measures for the public and employees, Staff recommend the installation of panic buttons at Dorothy A. Quesada pool, Westwind Community Center pool, and Ovitt Family Community Library. These strategically placed devices will provide immediate access to emergency assistance ensuring a quick response during an emergency. Bay Alarm will install panic buttons and provide ongoing alarm services at these added locations to ensure the safety of the buildings, City staff, and the general public.

Staff recommends approving Amendment No. 11 to the Maintenance Services Agreement with Bay Alarm Company in the amount of $17,000 for a new total not-to-exceed contract amount of $1,530,547. 237
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Ontario City CouncilMarch 18, 2025

Ontario City Council
March 18, 2025