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AGENDA
JOINT MEETING OF THE CITY COUNCIL, SUCCESSOR AGENCY TO THE
REDEVELOPMENT AGENCY, PUBLIC FINANCE AUTHORITY, PUBLIC UTILITY
AUTHORITY, HOUSING AUTHORITY, PERRIS JOINT POWERS AUTHORITY AND
PERRIS COMMUNITY ECONOMIC DEVELOPMENT CORPORATION OF THE CITY OF PERRIS
Tuesday, October 13, 2026 | 6:30 PM
City Council Chambers
(Corner of San Jacinto and Perris Boulevard)
101 North D St., Perris, CA
In compliance with the Americans with Disabilities Act and Government Code Section 54953(g), the City Council has adopted a reasonable accommodations policy to swiftly resolve accommodation requests. The policy can also be found on the City’s website at:
https://www.cityofperris.org/home/showpublisheddocument/15875/638102339679387909.
Please contact the City Clerk’s Of ice at (951) 943-6100 to make an accommodation request, or to obtain an electronic or printed copy of the policy.
THE CITY COUNCIL MEETING IS ALSO AVAILABLE FOR VIEWING AT THE FOLLOWING:
FOR CABLE SUBSCRIBERS ONLY WITHIN PERRIS: SPECTRUM: CHANNEL 3 | FRONTIER: CHANNEL 16 For further information on an agenda item, please contact the City at 101 N North “D” Street, or call (951)943-6100
Agenda 10-13-2026
1 1. CALL TO ORDER: 6:30 P.M.
2. ROLL CALL:
Corona, Rabb, Vallejo, Nava, Vargas
3. INVOCATION:
Pastor Gregory McNair
God's Harvest Community Church
21400 Johnson Street
Perris, CA 92570
4. PLEDGE OF ALLEGIANCE:
Mayor Pro Tem Corona will lead the Pledge of Allegiance.
5. REPORT ON CLOSED SESSION ITEMS:
6. PRESENTATIONS/ANNOUNCEMENTS: At this time, the City Council may recognize citizens and organizations that have made significant contributions to the community, and it may accept awards on behalf of the City.
6.A. Recognition of Riverside County Firefighters for Emergency Childbirth Response.
6.B. U. S. Conference of Mayors, America 250th Poster Contest Award Recognition.
6.C. Recognition of the Employee of the 3rd Quarter 2026.
7. YOUTH ADVISORY COMMITTEE COMMUNICATIONS:
8. PUBLIC COMMENT/CITIZEN PARTICIPATION: This is the time when any member of the public may bring a matter to the attention of the Mayor and the City Council that is within the jurisdiction of the City Council. The Ralph M. Brown act limits the Mayor’s, City Council’s, and staff’s ability to respond to comments on non-agendized matters at the time such
PUBLIC PARTICIPATION OPTIONS
TO PROVIDE IN-PERSON PUBLIC COMMENT:
You may provide public comment in-person by filling out a speaker card (optional) and giving it to the City Clerk.
TO PROVIDE ONLINE/AUDIO PUBLIC COMMENT:
To provide audio public comment, connect to the meeting online or by telephone please see below.
Join Online from PC, Mac, iPad or Android: https://us06web.zoom.us/j/83270967568-Use the Raise Hand feature to request to speak
Webinar ID: 832 7096 7568
Join via audio/telephone: +1 669 444 9171 US, +1 346 248 7799 US (Houston), +1 720 707 2699 US (Denver), +1 253 215 8782 US (Tacoma), +1 646 558 8656 US (New York), +1 301 715 8592 US (Washington DC), +1 312 626 6799 US (Chicago)
-Use *9 to request to speak | *6 to unmute/mute
CLOSED SESSION: NO CLOSED SESSION
Agenda 10-13-2026
2 comments are made. Thus, your comments may be agendized for a future meeting or referred to staff. The City Council may discuss or ask questions for clarification, if desired, at this time. Public comment is limited to three (3) minutes.
9. APPROVAL OF MINUTES:
9.A. Consideration to approve the minutes of the Special Joint Meeting held on September 17, 2026 of the City Council, Successor Agency to the Redevelopment Agency, Public Finance Authority, Public Utility Authority, Housing Authority, Perris Community Economic Development Corporation and the Perris Joint Powers Authority.
9.B. Consideration to approve the minutes of the Regular Joint Meeting held on September 29, 2026 of the City Council, Successor Agency to the Redevelopment Agency, Public Finance Authority, Public Utility Authority, Housing Authority, Perris Community Economic Development Corporation and the Perris Joint Powers Authority.
10. CONSENT CALENDAR: Consent Calendar items are normally enacted in one motion. The Mayor or City Council may remove a Consent Calendar item for separate action. Public comment is limited to three (3) minutes.
10.A. Consideration to award a Public Works Contract to Ybanag Realty and Development Corporation, doing business as D’Ybanag Construction Company, for the Storm Drain, Channel, and Basin Maintenance and Rehabilitation Project in the amount of $384,928.00, with a 10% contingency of $38,492.80 for a total amount of $423,420.80, and a contract term of sixty working days.
10.B. Consideration to award a Public Works Contract to Carter Enterprises Group, Inc. for the City-Wide Annual On-Call Sidewalk Repair and Maintenance Services Program in an amount not to exceed $250,000, plus a 10% contingency in the amount of $25,000, totaling $275,000, for a one-year contract term with up to two additional one-year extensions.
10.C. Consideration to execute a Second Amendment extending the existing agreement with Willdan Financial Services for an additional one-year term for Annual Administration and Annexation Services of the Landscape and Lighting Act of 1972 District in an amount not to exceed $58,500.00.
10.D. Consideration to approve the City's monthly Check Register for September 2026.
10.E. Consideration to award a Professional Services Agreement to Pacific Code Compliance LLC (PCC) for project management services for the new fire station located at 2495 Murrieta Road, in an amount not to exceed $260,000.00 for a term ending on December 31, 2027.
10.F. Consideration to adopt Proposed Resolution Number (next in order) regarding authorization to execute and submit applications and related documents to the California Governor's Office of Emergency Services (CAL OES) for federal funding opportunities under the Infrastructure Investment and Jobs Act of 2021.
10.G. Consideration to approve an Employee Travel Policy Including on a Per Diem Basis for Meals. (This item was continued from the September 29, 2026 City Council Meeting).
10.H. Consideration to approve a Revised City Council Travel Policy Including on a Per Diem Agenda 10-13-2026
3 Basis for Meals. (This item was continued from the September 29, 2026 City Council Meeting).
10.I. Consideration to Approve a Professional Services Agreement between the City of Perris and CG Resources Management and Engineering, Inc. for National Pollutant Discharge Elimination System Assistance and Water Quality Management Program Review and Inspection Services in the amount not to exceed $70,000.00 for a three (3) year contract term.
10.J. Consideration to Approve the Transportation Uniform Mitigation Fee Reimbursement Agreement in the amount of $3,735,601.00 between the City of Perris, City of Menifee, Western Riverside Council of Governments and Core 5 Industrial Partners, LLC. for construction of the Ethanac Road Improvements between I-215 Interchange and Sherman Road.
10.K. Consideration to Conduct the Second Reading by Title Only and Adopt Ordinance No. 1479 Approving Zoning Code Text Amendment 26-00004 – A city-initiated proposal to amend Title 19 (Zoning Code) of the Perris Municipal Code by updating the Accessory Dwelling Unit regulations in Chapter 19.81 and the Reasonable Accommodations in Housing provisions in Chapter 19.87 for compliance with State law. Applicant: City of Perris.
10.L. Consideration to Conduct the Second Reading by Title Only and Adopt Ordinance No. 1480 approving Planned Development (PD) Overlay Zone 22-05152 to apply a PD overlay zone on 13.61 acres currently zoned R-6,000 Single Family Residential Zone to facilitate the construction of a 91-unit single-family residential gated development, located north of Metz Road between McKimball Road and “A” Street. Applicant: Anthony Arnest, Pacific Communities.
10.M. Consideration to Approve a Lease Agreement for property located at 129 East 10th Street, APN 313-272-005 between the City of Perris and Edgar and Stephanie Arredondo.
11. PUBLIC HEARINGS: The public is encouraged to express your views on any matter set for public hearing. It is our procedure to first receive the staff report, then to ask for public testimony, first from those in favor of the project followed by testimony from those in opposition to it, and if there is opposition, to allow those in favor, rebuttal testimony only as to the points brought up in opposition. To testify on the matter, you need to simply come forward to the speaker’s podium at the appropriate time, give your name and address and make your statement. After a hearing is closed, you may not further speak on the matter unless requested to do so or are asked questions by the Mayor or a Member of the City Council. Public comment is limited to three (3) minutes.
11.A. Consideration to Adopt Proposed Resolution Number (next in order) and Introduce and Conduct the First Reading, by Title Only, of Ordinance Number (next in order) regarding Specific Plan Amendment 26-00002 and Zoning Code Text Amendment 26-00002 – A proposal to amend Title 19 (Zoning Code) of the Perris Municipal Code, and the Perris Valley Commerce Center, Downtown Perris, Green Valley, Harvest Landing, New Perris, and Riverglen Specific Plans to prohibit data centers Citywide. Applicant: City of Perris.
11.B. Consideration to Issue the 10-Day Report identifying the measures taken to alleviate the conditions that led to the prior 10-month and 15-day Industrial Moratorium extension on the approval, establishment, and expansion of industrial warehousing and distribution uses, and adopting an Interim Urgency Ordinance, by title, extending the Moratorium for an Agenda 10-13-2026
4 additional year until December 9, 2027.
11.C. Consideration to adopt Proposed Resolution Numbers (next in order) approving Annexation of DPR 22-00018 to the City’s Maintenance Districts. Owner(s): Newcastle Partners, Inc, APN(s): 330-090-007, 330-090-043. DPR 22-00018 (Newcastle Ellis) is located located south of Ellis Avenue, north of Case Road, between Goetz Road and the I215 Freeway.
11.D. Consideration to adopt Proposed Resolution Numbers (next in order) approving Annexation of DPR 22-00018 (Newcastle Ellis) into CFD 2018-02 (Public Services District) – Annexation No. 31. DPR 22-00018 is located south of Ellis Avenue, north of Case Road, between Goetz Road and the I-215 Freeway. APN(s): 330-090-007, 330-090- 043. Owner(s): Newcastle Partners, Inc.
11.E. Consideration to adopt Proposed Resolution Numbers (next in order) approving Annexation of DPR 22-00018 (Newcastle Ellis) into CFD 1-S (South Perris Public Services District) – Annexation No. 17. DPR 22-00018 is located south of Ellis Avenue, north of Case Road, between Goetz Road and the I-215 Freeway. APN(s): 330-090-007, 330-090-043. Owner(s): Newcastle Partners, Inc.
11.F. Consideration to adopt Proposed Resolution Number (next in order) regarding Annexation of CUP 23-05025 to the City’s Flood Control Maintenance District No. 1 (FCMD 1).
Owner(s): Basraon, LLC, APN(s): 305-080-082, CUP 23-05025 is located within the Perris Spectrum Shopping Center.
11.G. Consideration to adopt Proposed Resolution Numbers (next in order) approving Annexation of CUP 23-05025 into CFD 2001-3 (North Perris Public Safety District) – Annexation No. 76. CUP 23-05025 is located within the Perris Spectrum Shopping Center.
APN(s): 305-080-082. Owner(s): Basraon.
11.H. Consideration to Introduce and Conduct the First Reading, by title only, of Proposed Ordinance Number (next in order)-a proposal to Update the Stephens’ Kangaroo Rat (SKR) mitigation fees for new development projects to include an annual Consumer Price Index (CPI) adjustment.
12. BUSINESS ITEMS: (not requiring a “Public Hearing”): NO BUSINESS ITEMS
13. COUNCIL COMMUNICATIONS: (Committee Reports, Agenda Items, Meeting Requests and Review etc.) This is an opportunity for the Mayor and City Councilmembers to report on their activities and the actions of the Committees upon which they sit, to bring a matter to the attention of the full Council and staff, and to request agenda items.
Any matter that was considered during the public hearing portion is not appropriate for discussion in this section of the agenda.
NO ACTION CAN BE TAKEN AT THIS TIME.
14. CITY MANAGER’S REPORT:
15. ADJOURNMENT:
Agenda 10-13-2026
5 CITY OF PERRIS
CITY COUNCIL
AGENDA SUBMITTAL
9.A
BACKGROUND/DISCUSSION:
BUDGET (or FISCAL) IMPACT:
MEETING DATE: October 13, 2026
SUBJECT: Consideration to approve the minutes of the Special Joint Meeting held on September 17, 2026 of the City Council, Successor Agency to the Redevelopment Agency, Public Finance Authority, Public Utility Authority, Housing Authority, Perris Community Economic Development Corporation and the Perris Joint Powers Authority.
REQUESTED ACTION: Approve the minutes of the Special Joint Meeting held on September 17, 2026.
CONTACT: Nancy Salazar, City Clerk
None
None
Prepared By: Judy Haughney, Assistant City Clerk
Attachments:
1. Minutes-September 17, 2026 Special Joint City Council Meeting.pdf 6 7
8 9
CITY OF PERRIS
CITY COUNCIL
AGENDA SUBMITTAL
9.B
BACKGROUND/DISCUSSION:
BUDGET (or FISCAL) IMPACT:
MEETING DATE: October 13, 2026
SUBJECT: Consideration to approve the minutes of the Regular Joint Meeting held on September 29, 2026 of the City Council, Successor Agency to the Redevelopment Agency, Public Finance Authority, Public Utility Authority, Housing Authority, Perris Community Economic Development Corporation and the Perris Joint Powers Authority.
REQUESTED ACTION: Approve the Minutes of the Regular Joint City Council meeting held on September 29, 2026.
CONTACT: Nancy Salazar, City Clerk
None
None
Prepared By: Judy Haughney, Assistant City Clerk
Attachments:
1. Minutes-September 29, 2026 Regular Joint City Council Meeting.pdf 10 11
12 13
14 15
16 17
18 19
20 CITY OF PERRIS
CITY COUNCIL
AGENDA SUBMITTAL
10.A
BACKGROUND/DISCUSSION:
MEETING DATE: October 13, 2026
SUBJECT: Consideration to award a Public Works Contract to Ybanag Realty and Development Corporation, doing business as D’Ybanag Construction Company, for the Storm Drain, Channel, and Basin Maintenance and Rehabilitation Project in the amount of $384,928.00, with a 10% contingency of $38,492.80 for a total amount of $423,420.80, and a contract term of sixty working days.
REQUESTED ACTION: That the City Council:
1. Award a Public Works Construction Contract to Ybanag Realty and Development Corporation, doing business as D’Ybanag Construction Company, to complete the Storm Drain, Channel, and Basin Maintenance and Rehabilitation Project for a contract amount of $384,928.00 and a contract term of sixty working days;
2. Authorize 10% of the contract amount for contingency in the amount of $38,492.80; and
3. Authorize the City Manager to execute the Public Works Construction Contract and all necessary documents, approved as to form by the City Attorney.
CONTACT: Bryant Hill, Director of Public Works
The Storm Drain, Channel, and Basin Maintenance and Rehabilitation Project provides for maintenance and rehabilitation of storm drain facilities located throughout the city.
The scope of work includes cleaning reinforced concrete box channels and storm drainpipes greater than 36 inches in diameter; maintaining earthen channels; performing maintenance at the flood control detention basins; repairing chain-link fencing; and removing and disposing of excess material generated by the work.
On August 17, 2026, the Project was advertised on PlanetBids, the City’s electronic bidding platform.
Bids were opened on September 11, 2026. A total of eight bids were received, ranging from $384,928.00 to $2,490,580.00, as listed below:
21 BUDGET (or FISCAL) IMPACT:
Bidder Bid Amount
Ybanag Realty & Development
Corporation
$384,928.00
Jeremy Harris Construction, Inc. $408,030.00
Downstream Services, Inc. $416,817.00
Gentry General Engineering, Inc. $523,590.00
EBS General Engineering, Inc. $586,140.00
Matcon General Engineering, Inc. $669,887.44
Leonida Builders, Inc. $826,900.00
United Storm Water, Inc. $2,490,580.00
The lowest responsible bid was submitted by D’Ybanag Construction Company, a local City of Perris business, in the amount of $384,928.00.
Staff recommends that the City Council: 1) award the Public Works Contract to Ybanag Realty & Development Corporation, doing business as D’Ybanag Construction Company, to complete the Storm Drain, Channel, and Basin Maintenance and Rehabilitation Project for a contract amount of $384,928.00 and a contract term of sixty working days; 2) authorize a 10% construction contingency in the amount of $38,492.80; for a total amount of $423,420.80; and 3) authorize the City Manager to execute the Public Works Construction Contract and all necessary documents, approved as to form by the City Attorney.
There will be no impact on the general fund. The funding will be paid from the Flood Control District based on the work performed within each zone. The contract amount is $384,928.00, plus a 10% contingency of $38,492.80, for a total contract amount of $423,420.80, with a contract term of sixty working days.
Prepared By: Amanda Blaker, Capital Improvement Project Manager Attachments:
1. Location Map
2. Public Works Construction Contract.pdf
3. Bid Form
4. Bid Results
5. Improvement Plans
22 ATTACHMENT 1
LOCATION MAP
23 24
ATTACHMENT 2
PUBLIC WORKS CONSTRUCTION CONTRACT
25 01006.0006 2196644.1 9/21/2026
PUBLIC WORKS CONSTRUCTION CONTRACT
THIS PUBLIC WORKS CONSTRUCTION CONTRACT (“Contract”) is made and entered into as of the date executed by the City Manager, by and between Ybanag Realty and Development Corporation, a California corporation dba D’Ybanag Construction Company (“Contractor”) and the City of Perris, a California municipal corporation (“City”) for a total amount of $423,420.80 consisting of $384,928.00 as set forth in Contractor’s bid (the "Contract Amount") and up to $38,492.80 in a Construction Contingency amount if approved by the City pursuant to this Contract.
RECITALS
WHEREAS, City sought bids pursuant to the Perris Municipal Code for the Project (defined below); and
WHEREAS, City received and accepted the bid of Contractor dated September 11, 2026, (“Contractor’s Bid”) subject to Section 2 below; and
WHEREAS, the City Council has authorized the City Manager to enter into a written contract with Contractor for furnishing labor, equipment, and material for the construction of:
JOB NO.: 2026-01
DESCRIPTION: The Storm Drain, Channel, and Basin Maintenance, and Rehabilitation Project
LOCATION: Various locations throughout the City
(hereinafter referred to as the “Project”).
NOW, THEREFORE, in consideration of the mutual covenants herein contained, it is agreed:
1. GENERAL SCOPE OF WORK
a. Work. Contractor shall furnish all necessary labor, tools, materials, appliances, and equipment for and do the work for the Project (collectively, the “Work”). Said Work shall be performed in accordance with (i) all of the Contract Documents incorporated herein, (ii) the bid prices contained in the Contractor’s Bid, and (iii) the instructions of the City Manager or his/her designee (the “Project Manager”).
By executing this Contract, Contractor warrants that Contractor (i) has thoroughly investigated and considered the scope of Work to be performed, (ii) has carefully considered how the Work should be performed, and (iii) fully understands the facilities, difficulties and restrictions attending performance of the Work under this Contract. If the Work involve work upon any site, Contractor warrants that Contractor has or will investigate the site and is or will be fully acquainted with the conditions there existing, prior to commencement of the Work hereunder. b. Warranty. Contractor warrants all work under the Contract (which for purposes of this Section shall be deemed to include unauthorized work which has not been 26 01006.0006 2196644.1 9/21/2026 2
removed and any non-conforming materials incorporated into the work) to be of good quality and free from any defective or faulty material and workmanship.
Contractor agrees that for a period of one year (or the period of time specified elsewhere in the Contract or in any guarantee or warranty provided by any manufacturer or supplier of equipment or materials incorporated into the work, whichever is later) after the date of final acceptance, Contractor shall within ten (10) days after being notified in writing by the City of any defect in the work or non-conformance of the work to the Contract, commence and prosecute with due diligence all work necessary to fulfill the terms of the warranty at its sole cost and expense. Contractor shall act as soon as requested by the City in response to an emergency. In addition, Contractor shall, at its sole cost and expense, repair, remove and replace any portions of the work (or work of other contractors) damaged by its defective work or which becomes damaged in the course of repairing or replacing defective work. For any work so corrected, Contractor’s obligation hereunder to correct defective work shall be reinstated for an additional one year period, commencing with the date of acceptance of such corrected work.
Contractor shall perform such tests as the City may require to verify that any corrective actions, including, without limitation, redesign, repairs, and replacements comply with the requirements of the Contract. All costs associated with such corrective actions and testing, including the removal, replacement, and reinstitution of equipment and materials necessary to gain access, shall be the sole responsibility of the Contractor. All warranties and guarantees of subcontractors, suppliers and manufacturers with respect to any portion of the work, whether express or implied, are deemed to be obtained by Contractor for the benefit of the City, regardless of whether or not such warranties and guarantees have been transferred or assigned to the City by separate agreement and Contractor agrees to enforce such warranties and guarantees, if necessary, on behalf of the City. In the event that Contractor fails to perform its obligations under this Section, or under any other warranty or guaranty under this Contract, to the reasonable satisfaction of the City, the City shall have the right to correct and replace any defective or nonconforming work and any work damaged by such work or the replacement or correction thereof at Contractor’s sole expense. Contractor shall be obligated to fully reimburse the City for any expenses incurred hereunder upon demand. c. Final Acceptance. Acceptance of the Project shall only be by action of the City Manager or his or her designee. Neither the acceptance nor any prior inspections or failure to inspect shall constitute a waiver by City of any defects in the work. From and after acceptance, the Project shall be owned and operated by City. As a condition to acceptance, Contractor shall certify to City in writing that all of the work has been performed in strict conformity with the Contract and that all costs have been paid or supplied to City for security required herein, satisfactory to City, guaranteeing such performance.
2. CONTRACT DOCUMENTS INCORPORATED
This Contract includes and hereby incorporates in full each of the following documents, including all exhibits, drawings, plans and specifications, attachments and addenda thereto 27 01006.0006 2196644.1 9/21/2026 3
(collectively, the “Contract Documents”):
i. Notice Inviting Bids
ii. Instructions to Bidders
iii. Bid Forms
iv. Contractor's Bid (only portions that described the scope of work and Project cost)
v. General Provisions
vi. Special Provisions
vii. Technical Specifications
viii. Project Plans
ix. Performance and Payment Bonds
x. All change orders authorized after execution of this Contract.
This Contract is intended to require a complete and finished Project and anything necessary to complete the Work properly. Further, Contractor shall perform the Work in accordance with applicable law and lawful governmental regulations (including, but not limited to, all State and Federal laws, codes and regulations, and Municipal Ordinances and Regulations of City), whether set out specifically in this Contract or not. Should it be ascertained that any inconsistency exists between the Contract Documents and this Contract, the provisions of this Contract shall control, except as required and specified under law.
3. CONSTRUCTION START AND COMPLETION DATE
a. Start and Completion
The mandatory start construction date shall be the date stipulated in the Notice to Proceed issued by the Project Manager ("Start Date"). Contractor shall complete the Project within Sixty (60) Working Days from the Start Date (“Completion Date"). City and Contractor acknowledge and agree that at the time of execution of this Contract it is impracticable and extremely difficult to fix the actual damages that will be incurred by City if Contractor fails to complete the Project by the Completion Date. Accordingly, City and Contractor agree that liquidated damages in the amount of One Thousand Dollars ($1,000.00) for each calendar day the Project remains incomplete beyond the Completion Date is a reasonable sum to assess as liquidated damages due to City by reason of the failure of Contractor to complete the Project. City may deduct the amount of liquidated damages from any payment due or that may become due to Contractor under this Contract. Progress payments made after the Completion Date shall not constitute a waiver of liquidated damages. 28 01006.0006 2196644.1 9/21/2026 4
Contractor's Initials: _________
b. Force Majeure
The time period(s) specified in the Contract Documents for performance of the Work rendered pursuant to this Contract shall be extended because of any delays due to unforeseeable causes beyond the control and without the fault or negligence of the Contractor, including, but not restricted to, acts of God or of the public enemy, unusually severe weather, fires, earthquakes, floods, epidemics, quarantine restrictions, riots, strikes, freight embargoes, wars, litigation, and/or acts of any governmental agency, including the City, if the Contractor shall within ten (10) days of the commencement of such delay notify the Project Manager in writing of the causes of the delay. The Project Manager shall ascertain the facts and the extent of delay, and extend the time for performing the Work for the period of the enforced delay when and if in the judgment of the Project Manager such delay is justified. The Project Manager’s determination shall be final and conclusive upon the Parties to this Contract. In no event shall Contractor be entitled to recover damages against the City for any delay in the performance of this Contract, however caused, Contractor’s sole remedy being extension of the Contract pursuant to this Section.
4. INSURANCE AND BONDS
a. Insurance
The Contractor shall procure and maintain, at its sole cost and expense, in a form and content satisfactory to City, during the entire term of this Contract including any extension thereof, the following policies of insurance:
i. Commercial General Liability Insurance. Contractor shall maintain commercial general liability insurance with coverage at least as broad as Insurance Services Office form CG 00 01, in an amount not less than $2,000,000 per occurrence, $4,000,000 general aggregate, for bodily injury, personal injury, and property damage. The policy must include contractual liability that has not been amended. Any endorsement restricting standard ISO “insured contract” language will not be accepted. The Product and Completed Operations coverage under the policy shall extend a minimum of three (3) years after completion of the Project. 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.
The 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. The policy shall specifically provide for a duty to defend on the part of the insurer.
ii. Worker’s Compensation Insurance. A policy of worker’s compensation insurance in such amount as will fully comply with the laws of the State of California and which shall indemnify, insure and provide legal defense for 29 01006.0006 2196644.1 9/21/2026 5
both the Contractor and the City against any loss, claim or damage arising from any injuries or occupational diseases carrying out the work or service contemplated in this Contract. At a minimum, Contractor shall maintain Workers’ Compensation Insurance (Statutory Limits) and Employer’s Liability Insurance (with limits of at least $1,000,000). iii. Business Automobile Insurance. Contractor shall maintain automobile insurance at least as broad as Insurance Services Office form CA 00 01 covering bodily injury and property damage for all activities of the Contractor arising out of or in connection with Services to be performed under this Contract, including coverage for any owned, hired, non-owned or rented vehicles, in an amount not less than $1,000,000 combined single limit for each accident.
iv. Builder’s Risk Insurance. Reserved.
v. Professional Liability Insurance (Errors & Omissions). Contractor shall maintain professional liability insurance that covers the services to be performed in connection with this Contract, in the minimum amount of $2,000,000 per claim and $4,000,000 in the aggregate. Any policy inception date, continuity date, or retroactive date must be before the effective date of this Contract and Contractor agrees to maintain continuous coverage through a period no less than three (3) years after completion of the services required by this Contract.
vi. Pollution Liability Insurance. Contractor shall maintain Environmental Impairment Liability insurance, written on a Contractor’s Pollution Liability form or other form acceptable to City providing coverage for liability arising out of sudden, accidental, and gradual pollution and remediation. The policy limit shall be no less than $1,000,000 per claim and in the aggregate. All activities contemplated in this Contract shall be specifically scheduled on the policy as “covered operations.” The policy shall provide coverage for the hauling of waste from the Project site to the final disposal location, including non-owned disposal sites. vii. General Insurance Requirements.
(1) Primary/noncontributing; Waiver of Subrogation. All of the above policies of insurance shall be primary insurance. All insurance coverage maintained or procured pursuant to this Contract shall be endorsed to waive subrogation against City, its officers, employees and agents, and its insurers 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 City, and shall require similar written express waivers and insurance clauses from each of its subcontractors.
30 01006.0006 2196644.1 9/21/2026 6
(2) Evidence of Insurance. No work or service under this Contract shall commence until the Contractor has provided the City with Certificates of Insurance or appropriate insurance binders evidencing the above insurance coverage and said Certificates of Insurance or binders are approved by the City. In the event any of the above policies of insurance are canceled, the Contractor shall, prior to the cancellation date, submit new evidence of insurance in conformance with this Section to the Project Manager or the Project Manager’s designee, as defined in the Contract Documents and incorporated herein.
(3) Not Limiting. Contractor agrees that the provisions of this Section 4(a) shall not be construed as limiting in any way the extent to which the Contractor may be held responsible for the payment of damages to any persons or property resulting from the Contractor’s activities or the activities of any person or person for which the Contractor is otherwise responsible.
(4) Subcontractors. In the event the Contractor subcontracts any portion of the Work pursuant to this Contract, the contract between the Contractor and such subcontractor shall require the subcontractor to maintain the same policies of insurance that the Contractor is required to maintain pursuant to this Section.
(5) Duration of Coverage. Contractor shall procure and maintain for the duration of this Contract insurance against claims for injuries to persons or damages to property, which may arise from or in connection with the performance of the Work hereunder by Contractor, its agents, representatives, employees or subcontractors. (6) City's Rights of Enforcement. In the event any policy of insurance required under this Contract does not comply with these specifications or is canceled and not replaced, City has the right but not the duty to obtain the insurance it deems necessary and any premium paid by City will be promptly reimbursed by Contractor or City will withhold amounts sufficient to pay premium from Contractor payments. In the alternative, City may cancel this Contract.
(7) Enforcement of Contract Provisions (non-estoppel). Contractor acknowledges and agrees that any actual or alleged failure on the part of the City to inform Contractor of non-compliance with any requirement imposes no additional obligations on the City nor does it waive any rights hereunder.
(8) Requirements Not Limiting. Requirements of specific coverage features or limits contained in this Section are not intended as a 31 01006.0006 2196644.1 9/21/2026 7
limitation on coverage, limits or other requirements, or a waiver of any coverage normally provided by any insurance. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue and is not intended by any party or insured to be all inclusive, or to the exclusion of other coverage, or a waiver of any type. If the Contractor maintains higher limits than the minimums shown above, the City requires and shall be entitled to coverage for the higher limits maintained by the Contractor. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City.
(9) Notice of Cancellation. Contractor agrees to oblige its insurance agent or broker and insurers to provide to City with a thirty (30) day notice of cancellation (except for nonpayment for which a ten (10) day notice is required) or nonrenewal of coverage for each required coverage.
(10) Additional Insured Status. General and auto liability policies shall provide or be endorsed to provide that City and its officers, officials, employees, and agents, and volunteers shall be additional insureds under such policies. This provision shall also apply to any excess/umbrella liability policies.
(11) Prohibition of Undisclosed Coverage Limitations. None of the coverages required herein will be in compliance with these requirements if they include any limiting endorsement of any kind that has not been first submitted to City and approved of in writing. (12) Separation of Insureds. A severability of interests provision must apply for all additional insureds ensuring that Contractor's insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the insurer's limits of liability. The policy(ies) shall not contain any cross-liability exclusions.
(13) Pass Through Clause. Contractor agrees to ensure that its subconsultants, subcontractors, and any other party involved with the Project who is brought onto or involved in the project by Contractor, provide the same minimum insurance coverage and endorsements required of Contractor. Contractor agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this section. Contractor agrees that upon request, all agreements with consultants, subcontractors, and others engaged in the project will be submitted to City for review.
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(14) Agency's Right to Revise Specifications. The City reserves the right at any time during the term of the Contract to change the amounts and types of insurance required by giving the Contractor ninety (90) days advance written notice of such change. If such change results in substantial additional cost to the Contractor, the City and Contractor may renegotiate Contractor's compensation.
(15) Self-Insured Retentions. Any self-insured retentions must be declared to and approved by City. City reserves the right to require that self-insured retentions be eliminated, lowered, or replaced by a deductible. Self-insurance will not be considered to comply with these specifications unless approved by City.
(16) Timely Notice of Claims. Contractor shall give City prompt and timely notice of claims made or suits instituted that arise out of or result from Contractor's performance under this Contract, and that involve or may involve coverage under any of the required liability policies.
(17) Additional Insurance. Contractor shall also procure and maintain, at its own cost and expense, any additional kinds of insurance, which in its own judgment may be necessary for its proper protection and prosecution of the work.
b. Performance and Payment Bonds
Concurrently with execution of this Contract, Contractor shall deliver to the City the following bonds:
i. Payment Bond. Concurrently with the execution of this Contract, Contractor shall deliver to City a Payment Bond in a sum not less than one hundred percent (100%) of the total Contract Amount which secures payments to persons furnishing labor, subcontractors, and suppliers in the event of default by Contractor. The payment bond shall be unconditional and remain in force during the entire term of the Contract and shall be null and void only if the Contractor completely and faithfully pays all persons furnishing labor, subcontractors, and suppliers that have been approved in writing to perform in whole or part the services required herein. ii. Performance Bond. Concurrently with execution of this Contract, Contractor shall deliver to City a Performance Bond in the sum of not less than one hundred percent (100%) of the total Contract Amount which secures the faithful performance of this Contract, unless such requirement is waived by the Project Manager or the Project Manager’s designee. The bond shall be unconditional and remain in force during the entire term of the Contract and shall be null and void only if the Contractor promptly and faithfully performs all terms and conditions of this Contract. 33 01006.0006 2196644.1 9/21/2026 9
All bonds shall each contain the original notarized signature of an authorized officer of the surety and affixed thereto shall be a certified and current copy of his/her power of attorney. All bonds shall be unconditional and remain in force during the entire term of this Contract. All bonds shall be in substantially the form as provided in Exhibit “A”.
City shall release the Payment Bond and the Performance Bond when the following have occurred: (1) Contractor has made a written request for release and provided evidence of satisfaction of all other requirements under this Contract, (2) the work for the Project has been finally accepted by the City, and (3) after passage of the time within which lien claims are required to be made pursuant to applicable laws; if lien claims have been timely filed, City shall hold the Payment Bond until such claims have been resolved, Contractor has provided statutory bond, or otherwise as required by applicable law
c. Sufficiency of Insurer and Surety
Insurance and bonds required by this Contract shall be satisfactory only if issued by companies qualified to do business in California, rated "A" or higher in the most recent edition of Best's Rating Guide, The Key Rating Guide or in the Federal Register, and only if they are of a financial category Class VII or larger, unless otherwise approved by the City's Risk Manager due to unique circumstances. In addition, the insurance carrier must be currently authorized by the Insurance Commissioner to transact business of insurance or be on the List of Approved Surplus Line Insurers issued by the State of California. If the City determines that the work to be performed under this Contract creates an increased or decreased risk of loss to the City, the Contractor agrees that the minimum limits of the insurance policies and the bonds required this Contract may be changed accordingly upon receipt of written notice from the City.
5. COORDINATION OF WORK
a. Representatives and Personnel of Contractor
The following principals of Contractor ("Principals") are hereby designated as being the principals and representatives of Contractor authorized to act on its behalf with respect to the work specified herein and make all decisions in connection therewith:
Lucio S. Collado President/CEO
Name Title
Name Title
Name Title
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The Principals shall be responsible during the term of this Contract for directing all activities of Contractor and devoting sufficient time to personally supervise the services hereunder. All personnel of Contractor, and any authorized agents, shall at all times be under the exclusive direction and control of the Principals. For purposes of this Contract, the Principals may not be replaced nor may their responsibilities be substantially reduced by Contractor without the express written approval of City. Additionally, Contractor shall make every reasonable effort to maintain the stability and continuity of Contractor's staff and subcontractors, if any, assigned to perform the services required under this Contract. Contractor shall notify City of any changes in Contractor's staff and subcontractors, if any, assigned to perform the services required under this Contract, prior to and during any such performance.
b. Status of Contractor
Contractor shall have no authority to bind City in any manner, or to incur any obligation, debt or liability of any kind on behalf of or against City, whether by contract or otherwise, unless such authority is expressly conferred under this Contract or is otherwise expressly conferred in writing by City. Contractor shall not at any time or in any manner represent that Contractor or any of Contractor's officers, employees, or agents are in any manner officials, officers, employees or agents of City. Neither Contractor, nor any of Contractor's officers, employees or agents, shall obtain any rights to retirement, health care or any other benefits which may otherwise accrue to City's employees. Contractor expressly waives any claim Contractor may have to any such rights.
c. City’s Project Manager
It shall be the Contractor's responsibility to assure that the Project Manager is kept informed of the progress of the performance of the services and the Contractor shall refer any decisions which must be made by City to the Project Manager. Unless otherwise specified herein, any approval of City required hereunder shall mean the approval of the Project Manager. The Project Manager shall have authority, if specified in writing by the City Manager, to sign all documents on behalf of the City required hereunder to carry out the terms of this Contract. d. Independent Contractor
Neither the City nor any of its employees shall have any control over the manner, mode or means by which Contractor, its agents or employees, perform the services required herein, except as otherwise set forth herein. City shall have no voice in the selection, discharge, supervision or control of Contractor's employees, servants, representatives or agents, or in fixing their number, compensation or hours of service. Contractor shall perform all services required herein as an independent contractor of City and shall remain at all times as to City a wholly independent 35 01006.0006 2196644.1 9/21/2026 11
contractor with only such obligations as are consistent with that role. City shall not in any way or for any purpose become or be deemed to be a partner of Contractor in its business or otherwise or a joint venturer or a member of any joint enterprise with Contractor.
6. PROHIBITION AGAINST SUBCONTRACTING OR ASSIGNMENT
The experience, knowledge, capability and reputation of Contractor, its principals and employees were a substantial inducement for the City to enter into this Contract. Therefore, Contractor shall not contract with any other entity to perform in whole or in part the services required hereunder without the express written approval of the City. All subcontractors shall obtain, at its or Contractor's expense, such licenses, permits, registrations and approvals (including from the City) as may be required by law for the performance of any services or work under this Contract. In addition, neither this Contract nor any interest herein may be transferred, assigned, conveyed, hypothecated or encumbered voluntarily or by operation of law, whether for the benefit of creditors or otherwise, without the prior written approval of City. Transfers restricted hereunder shall include the transfer to any person or group of persons acting in concert of more than twenty five percent (25%) of the present ownership and/or control of Contractor, taking all transfers into account on a cumulative basis. In the event of any such unapproved transfer, including any bankruptcy proceeding, this Contract shall be void. No approved transfer shall release the Contractor or any surety of Contractor of any liability hereunder without the express consent of City.
7. COMPLIANCE WITH LABOR AND WAGE LAWS
a. Prevailing Wages.
In accordance with the provisions of the California Labor Code, Division 2, Part 7, Chapter 1, Articles 1 and 2, Contractor and any subcontractor under Contractor is required to pay not less than the general prevailing rate of per diem wages to all workmen employed in the performance of this Contract, for work of a similar character in the locality in which the public work is performed, and not less than the general prevailing rate of per diem wages for holiday and overtime work. In that regard, pursuant to the California Labor Code, the Director of the Department of Industrial Relations of the State of California has determined such general prevailing rates of per diem wages. Copies of such prevailing rates of per diem wages are on file in the office of the City’s Public Works Department, located at 1015 South “G” Street, and are available to any interested party upon request; or may be obtained online from the Department of Industrial Relations website at https://www.dir.ca.gov/Public-Works/Prevailing-Wage.html. Contractor shall cause a copy of such determinations to be posted at the job site.
Contractor and any subcontractor under Contractor is subject to forfeiture of penalties to City, as provided under the provision of Section 1775 of the California Labor Code for each worker employed, for each calendar day or portion thereof, if such worker is paid less than the general prevailing rate of wages hereinbefore 36 01006.0006 2196644.1 9/21/2026 12
stipulated for any work done under this Contract, by him or by any subcontractor under him, in violation of the provisions of the California Labor Code. Penalties shall be in addition to civil penalties, restitution of wages, liquidated damages to the employee, and any other applicable penalties imposed by the Labor Commissioner pursuant to the California Labor Code, or court of law.
By entering into this Contract, Contractor certifies that neither it nor any person or firm that has an interest in Contractor's firm is a person or firm that is barred from being awarded Public Works contracts by virtue of Section 1777.1 of the California Labor Code.
Contactor and any subcontractor under him shall submit, not less than monthly to the City and to the Labor Commissioner (or at a greater frequency as may be required by the Project Manager), certified copies of the payroll records for all workmen employed in the performance of this Contract for the preceding month's pay periods, and shall comply with all statutory requirements relating to certified copies of payroll records, including the maintenance of the records, their certification, and their availability for inspection as required by Labor Code Section 1776 and the Contract Documents. Contractor and any subcontractors must furnish electronic certified payroll records directly to the Labor Commissioner (aka Division of Labor Standards Enforcement) in a format prescribed by the Labor Commissioner not less than monthly.
b. Apprenticeship Employment.
In accordance with the provisions of Section 1777.5 of the California Labor Code as amended, and in accordance with the Regulations of the California Apprenticeship Council, properly indentured apprentices may be employed in the prosecution of the Work.
Attention is directed to the provisions in Sections 1777.5, 1777.6 and 1777.7 of the California Labor Code concerning the employment of apprentices by Contractor or any subcontractor under him.
Contractor and subcontractors under Contractor shall comply with all requirements of Sections 1777.5 and 1777.6 of the California Labor Code in the employment of apprentices.
c. Legal Hours of Work.
Eight (8) hours of labor shall constitute a legal day's work for all workers employed in the execution of this Contract, and Contractor, and any subcontractor under him, shall comply with and be governed by the laws of the State of California having to do with working hours set forth in Division 2, Part 7, Chapter 1, Article 3 of the Labor Code of the State of California as amended.
Contractor and any subcontractor under Contractor shall forfeit, as a penalty to City, twenty-five dollars ($25) for each worker employed in the execution of this 37 01006.0006 2196644.1 9/21/2026 13
Contract, by him or any subcontractor under him, upon any of the work hereinbefore mentioned, for each calendar day during which said worker is required or permitted to labor more than eight (8) hours in any one calendar day and 40 hours in any one calendar week in violation of the provisions of California Labor Code Section 1813, as amended.
d. Workers’ Compensation.
California Labor Code Sections 1860 and 3700 provide that every employer will be required to secure the payment of compensation to its employees if it has employees. In accordance with the provisions of California Labor Code Section 1861, Contractor certifies as follows:
“I am aware of the provisions of Section 3700 of the
Labor Code which require every employer to be
insured against liability for workers' compensation or
to undertake self-insurance in accordance with the
provisions of that code, and I will comply with such
provisions before commencing the performance of
the work of this contract.”
Contractor’s Authorized Initials ________
e. Public Works Contractor Registration.
Pursuant to California Labor Code Division 2, Part 7, Chapter 1, Article 2, a contractor or subcontractor shall not be qualified to engage in the performance of any contract for public work with City, as defined in said chapter, unless currently registered and qualified to perform public work pursuant to Section 1725.5 of the same. It is not a violation of this Section for an unregistered contractor to submit a bid that is authorized by Section 7029.1 of the Business and Professions Code or by Section 10164 or 20103.5 of the Public Contract Code, provided the contractor is registered to perform public work pursuant to Section 1725.5 at the time the contract is awarded.
This Contract is subject to compliance monitoring and enforcement by the Department of Industrial Relations.
Contractor shall cause job site notices to be posted as prescribed by regulation. f. Contractor’s Responsibility for Subcontractors.
For every subcontractor who will perform work under this Contract, Contractor shall be responsible for such subcontractor’s compliance with Division 2, Part 7, Chapter 1 (commencing with Section 1720) of the California Labor Code, and shall make such compliance a requirement in any contract with any subcontractor for work under this Contract. Contractor shall be required to take all actions necessary to enforce such contractual provisions and ensure subcontractor’s compliance, 38 01006.0006 2196644.1 9/21/2026 14
including without limitation, conducting a review of the certified payroll records of the subcontractor on a periodic basis or upon becoming aware of the failure of the subcontractor to pay his or her workers the specified prevailing rate of wages.
Contractor shall diligently take corrective action to halt or rectify any such failure by any subcontractor.
8. DISCOVERY OF UNKNOWN CONDITIONS
a. Pursuant to Public Contract Code Section 7104, Contractor shall promptly, and before the following conditions are disturbed, notify the City, in writing, of any: (i) material Contractor believes may be hazardous waste as defined in Section 25117 of the Health & Safety Code required to be removed to a Class I, II, or III disposal site in accordance with existing law; (ii) subsurface or latent physical conditions at the site, materially different from those indicated by information about the site made available to bidders prior to the deadline for submitting bids on the project; or (iii) unknown physical conditions at the site of any unusual nature, different from those ordinarily encountered and generally recognized as inherent in work of the character provided for in this Contract.
b. City shall promptly investigate the conditions, and if it finds that the conditions do 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 in accordance with this Contract. c. In the event that a dispute arises between City and Contractor whether the conditions materially differ, or involve hazardous waste, or cause a decrease or increase in Contractor’s cost of, or time required for, performance of any part of the work, Contractor shall not be excused from any scheduled completion date set, but shall proceed with all work to be 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 contracting parties.
9. UNIDENTIFIED UTILITIES
To the extent required by Government Code Section 4215, City will compensate Contractor for the cost of locating, repairing damage not due to the failure of Contractor to exercise reasonable care, and removing or relocating utility facilities not identified by City in the Contract Documents with reasonable accuracy, and for equipment on the Project necessarily idled during such work. Nothing herein shall be deemed to require City to indicate the presence of existing service laterals or appurtenances whenever the presence of such utilities on the project site can be inferred from the presence of other visible facilities, such as buildings, meters, and junction boxes, on or adjacent to the site of the construction; provided, however, nothing herein shall relieve City from identifying main or trunklines in the plans and specifications. If Contractor, while performing the work, discovers utility facilities not identified by City in the plans or specifications, Contractor shall immediately notify City and the utility in writing. This Contract is subject to Government Code Sections 4126 through 4216.9. Contractor must notify utilities and 39 01006.0006 2196644.1 9/21/2026 15
obtain an identification number before excavation or be subject to liability for damages to subsurface installations.
10. TRENCH EXCAVATION
Pursuant to Labor Code Section 6705, if this Contract is for more than $25,000 and requires the excavation of any trench or trenches five feet or more in depth, Contractor shall submit, in advance of such excavation, a detailed plan showing the design of shoring, bracing, sloping, or other provisions to be made for worker protection from the hazard of caving ground during the excavation of such trench or trenches. The plan shall be reviewed and accepted by the City, or a registered civil or structural engineer employed by the City to whom authority has been delegated, prior to the excavation. If the plan varies from the shoring system standards, the plan shall be prepared by a registered civil or structural engineer. This Section shall not be deemed to allow the use of a shoring, sloping, or protective system less effective than that required by the Construction Safety Orders. This Section shall not be construed to impose tort liability on the City or any of its employees.
Full compensation for sheeting, shoring, bracing, sloping, and all other provisions required for worker protection shall be considered as included in the contract price shown in the appropriate Bid Item, and no additional compensation will be allowed therefor.
11. NON-DISCRIMINATION
No discrimination shall be made in the employment of persons upon public works because of the race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, marital status, or sex of such persons, except as provided in Section 12940 of the Government Code, and every Contractor and subcontractor under Contractor for public works violating this Section is subject to all of the penalties imposed for a violation of Chapter I of the Labor Code in accordance with the provisions and of Section 1735 of said Code.
12. LICENSES, PERMITS, FEES AND ASSESSMENTS
Contractor shall obtain at its sole cost and expense such licenses, permits, registrations, and approvals as may be required by law for the performance of the services required by this Contract. Contractor shall have the sole obligation to pay for any fees, assessments and taxes, plus applicable penalties and interest, which may be imposed by law and arise from or are necessary for the Contractor’s performance of the services required by this Contract, and shall indemnify, defend and hold harmless City, its officers, employees or agents of City, against any such fees, assessments, taxes, penalties or interest levied, assessed or imposed against City hereunder.
13. CONTRACTOR'S LIABILITY; INDEMNIFICATION
a. Non-Liability of City.
City, its elected and appointed officials, officers, agents and employees, shall not be answerable or accountable in any manner for any loss or damage that may happen to the Work or any part thereof, or for any of the materials or other things 40 01006.0006 2196644.1 9/21/2026 16
used or employed in performing the Work, or for injury or damage to any person or persons, either worker, employees of Contractor or his subcontractors or the public, or for damage to adjoining or other property from any cause whatsoever arising out of or in connection with the performance of the Work. Contractor shall be responsible for any damage or injury to any person or property resulting from defects or obstructions or from any cause whatsoever, except the active negligence or willful misconduct of City, its employees, servants, or independent contractors who are directly responsible to City during the progress of the Work, or at any time before its completion and final acceptance.
b. Indemnification.
Contractor shall indemnify, defend with legal counsel approved by City, and hold harmless City, its officers, officials, employees and volunteers (each, an “Indemnitee”) from and against all liability, loss, damage, expense, cost (including without limitation reasonable legal counsel fees, expert fees and all other costs and fees of litigation) of every nature arising out of or in connection with Contractor's performance of work under this Contract or its failure to comply with any of its obligations contained in this Contract, except such loss or damage which is caused by the sole or active negligence or willful misconduct of the City. Should conflict of interest principles preclude a single legal counsel from representing both City and Contractor, or should City otherwise find Contractor’s legal counsel unacceptable, then Contractor shall reimburse the City its costs of defense, including without limitation reasonable legal counsels fees, expert fees and all other costs and fees of litigation. The Contractor shall promptly pay any final judgment rendered against the City (and its officers, officials, employees and volunteers) with respect to claims determined by a trier of fact to have been the result of the Contractor’s negligent, reckless or wrongful performance. It is expressly understood and agreed that the foregoing provisions are intended to be as broad and inclusive as is permitted by the law of the State of California and will survive termination of this Contract.
Contractor obligations under this Section apply regardless of whether or not such claim, charge, damage, demand, action, proceeding, loss, stop notice, cost, expense, judgment, civil fine or penalty, or liability was caused in part or contributed to by an Indemnitee. However, without affecting the rights of City under any provision of this Contract, Contractor shall not be required to indemnify and hold harmless City for liability attributable to the active negligence of City, provided such active negligence is determined by agreement between the parties or by the findings of a court of competent jurisdiction. In instances where City is shown to have been actively negligent and where City’s active negligence accounts for only a percentage of the liability involved, the obligation of Contractor will be for that entire portion or percentage of liability not attributable to the active negligence of City.
14. SUBCONTRACTOR COMPLIANCE
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Contractor shall be responsible for ensuring compliance by any subcontractor or lower tier subcontractor under it with this Contract, all State and Federal laws, codes and regulations, and Municipal Ordinances and Regulations of City.
15. THIRD PARTY CLAIM
Contractor shall notify City within 72 hours of the receipt of any third-party claim relating to this Contract.
16. CONTRACT PRICE AND PAYMENT
City shall pay Contractor for furnishing the material and doing the prescribed Work per the unit prices set forth in the Contractor's Bid. Contractor agrees to monthly progress payments as described in the Contract Documents.
No expenditure from the Construction Contingency ("Contingency") for any labor, equipment, materials, or any other article or service whatsoever, provided in relation to the Work shall be made without the prior written approval of City. Such expenditures and/or payments from the Contingency shall be made only pursuant to a Change Order signed by both parties. Verbal authorization to proceed with additional work shall not satisfy the requirement for a signed Change Order. No Change Orders combined shall exceed the Contract Amount plus the Contingency. The Contingency is for the sole and exclusive benefit and use of City for adjustments to the Contract Amount. The establishment of the Contingency is not to be construed as a promise, representation, or guarantee of the amount of compensable changes that may occur, which may be substantially more or less than the Contingency. Upon final completion and final payment, any portion of the Contingency that has not been expended by City for compensable changes expressly authorized by Change Order shall not be part of the total Contract Amount and shall not be payable or owed to Contractor.
a. Invoices.
Each month Contractor shall furnish to City an original invoice for all work performed and expenses incurred during the preceding month in a form approved by City’s Director of Finance. By submitting an invoice for payment under this Contract, Contractor is certifying compliance with all provisions of this Contract.
All invoices shall include a copy of Contractor’s Certified Payroll and proof that Certified Payroll has been submitted to the Department of Industrial Relations.
Contractor shall also submit a list of the prevailing wage rates (including federal prevailing wage rates, if applicable) for all employees and subcontractors providing services under this Contract, as applicable, with Contractor’s first invoice. If these rates change at any time during the term of this Contract, Contractor shall submit a new list of rates to the City with its first invoice following the effective date of the rate change.
Upon receipt and approval of an invoice by the City, City shall pay Contractor in a manner consistent with City’s normal procedures for handling accounts payable, 42 01006.0006 2196644.1 9/21/2026 18
but not to exceed thirty (30) days from date received by City, unless otherwise directed by the labor compliance officer. Progress payments shall be issued upon successful completion of items listed on the Bid Schedule of Values contained in the Contract Documents, and inspection made by the City, unless otherwise directed by the Project Manager, the Project Manager’s designee, or labor compliance officer. Payment to Contractor for work performed pursuant to this Contract shall not be deemed to waive any defects in work performed by Contractor.
b. Retention of Funds.
City will deduct a five percent (5%) retention from all progress payments in accordance with Public Contract Code Sections 22300 and 7201, which are hereby incorporated into this Contract. City shall permit the substitution of securities for any moneys withheld by City to ensure performance under this Contract. The retention held by the City shall be released within sixty (60) days after the date of completion of the work and the Project, as required by Public Contract Code 7107, which is hereby incorporated into this Contract. In the event of a dispute between City and Contractor, City may withhold from the final payment an amount not to exceed one hundred fifty percent (150%) of the disputed amount. The failure of City to exercise such right to deduct or to withhold shall not, however, affect the obligations of the Contractor to insure, indemnify, and protect City as elsewhere provided herein.
17. ADDITIONAL SERVICES
a. City shall have the right at any time during the performance of the Work, without invalidating this Contract, to order extra work beyond that specified in the General Scope of Work, set forth in Section 1 of this Contract, or make changes to the Work by altering, adding to or deducting from said Work. No such extra work may be undertaken unless a written change order is first given by the Project Manager or the Project Manager’s designee to the Contractor, incorporating therein any adjustment in (1) the Contract Amount, and/or (2) the time to perform this Contract, which said adjustments are subject to the written approval of the Contractor (“Change Order(s)”). Written Change Orders shall be made on forms prescribed by the Project Manager in accordance with the Contract Documents. Within ten (10) days after submission to the Project Manager of a Change Order that impacts the Contract Amount or the time for performance of the Work, the Contractor’s representative shall provide the City’s representative a written estimate of the effect of the proposed Change Order upon the Contract Amount and the actual cost of services that would be required for the change, which shall include a complete itemized cost breakdown of all labor and material showing actual quantities, hours, unit prices and wage rates and the effect upon time for performance of the work for such Change Order. All Change Orders must be signed by the Contractor and the Project Manager (or his or her designee) prior to commencing the extra work thereunder.
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b. Any increase in compensation of up to ten percent (10%) of the Contract Amount or $25,000, whichever is less; or any increase in the time to perform of up to one hundred eighty (180) days may be approved by the Project Manager, provided that such increase does not materially affect the Work in a detrimental manner or materially and detrimentally affect the interest of the City. Any greater increases, taken either separately or cumulatively, must be approved by the City Council. c. Any adjustment in the Contract Amount for a Change Order must be in accordance with the rates set forth in the Contractor’s Bid and the Bid Schedule of Values. If the rates in the Contractor’s Bid do not cover the type of work or materials in the Change Order, the cost of such work or materials shall not exceed an amount agreed upon in writing and signed by Contractor and the Project Manager. Contractor is solely responsible for timely performance of the work as changed by written direction. If the cost of the Change Order cannot be agreed upon, the City will pay for actual work of the Change Order that is completed to the satisfaction of the City, as follows:
i. Labor: The cost of labor shall be the actual cost for the wages of workers and subcontractors performing the work for the Change Order at the time such work is performed. The use of labor classifications that would increase the cost of such work shall not be permitted.
ii. Materials and Equipment: The cost of materials and equipment shall be at cost to Contractor or the lowest current price for which such materials and equipment are reasonably available at the time the work is performed, whichever is lower.
iii. Daily Reporting: Contractor must provide a daily report that includes all invoices for labor, materials and equipment costs for the work under the Change Order. The daily report must include the following: (1) list of names of workers, classifications, and hours worked; (2) description and list of quantities of materials used; (3) type of equipment, size, identification number, and hours of operation, including loading and transportation, if applicable; (4) description of other City authorized services and expenditures in such detail as the City may require. Failure to submit a daily report by the close of the next working day may, at the City’s sole and absolute discretion, waive the Contractor’s rights to payment for the work performed for that day.
d. It is expressly understood by Contractor that the provisions of this Section shall not apply to services specifically set forth in the Scope of Work. Contractor hereby acknowledges that it accepts the risk that the services to be provided pursuant to the Scope of Work may be more costly or time consuming than Contractor anticipates and that Contractor shall not be entitled to additional compensation therefor. City may in its sole and absolute discretion have similar work done by other contractors. In no event shall Contractor be entitled to recover damages against the City for any delay in the performance of this Contract or the Work, 44 01006.0006 2196644.1 9/21/2026 20
while City seeks estimates from third party contractors to perform additional services.
e. No claim for an increase in the Contract Amount or time for performance shall be valid unless the procedures established in this Section are followed.
18. RIGHTS, TITLE, INTEREST
Pursuant to California Public Contract Code Section 7103.5(b), in entering into a public works contract or a subcontract to supply goods, services, or materials pursuant to a public works contract, the Contractor or subcontractor offers and agrees to assign to the awarding body all rights, title, and interest in and to all causes of action it may have under Section 4 of the Clayton Act (15 U.S.C. Sec. 15) or under the Cartwright Act (Chapter 2 (commencing with Section 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. This assignment shall be made and become effective at the time the awarding body tenders final payment to the contractor, without further acknowledgment by the parties.
19. DEFECTIVE WORK
City’s inspection of the Work and the Project shall not relieve Contractor of any obligations to fulfill this Contract and complete the Project in accordance with the Contract Documents. Defective work and materials shall be made good. Failure of City to identify a defect, or failure of an inspector to reject any portion of the Work, is not acceptance or a waiver of poor workmanship notwithstanding payments or release of any retention in whole or in part, and shall not be construed to waive any of City’s rights or remedies under this Contract.
20. TERMINATION
City may terminate this Contract in whole or in part for cause or convenience by giving ten (10) calendar days’ written notice to Contractor. Where Contractor’s services have been so terminated by City, said termination shall not affect any right or remedy of City against Contractor or the surety, then existing or accrued thereafter. a. Termination for Cause
It is City's right to terminate this Contract upon Contractor’s failure to comply with the provisions of this Contract, which includes, but not limited to, (1) Contractor’s refusal or failure to perform the Work required under this Contract with diligence to ensure substantial completion of the Project by the Completion Date.
Termination shall be effective if Contractor does not cure its failure to perform in a manner acceptable to City within ten (10) calendar days of notice of termination; (2) Contractor fails to comply with the provisions of this Contract; (3) Contractor violates any ordinance, regulation, State or Federal Law which applies to its performance under this Contract; (4) Contractor files bankruptcy or otherwise becomes insolvent; (5) Contractor makes a general assignment for the benefit of 45 01006.0006 2196644.1 9/21/2026 21
creditors; (6) a trustee or receiver is appointed for the Contractor or his property; (7) Contractor repeatedly fails to supply sufficient skilled workers or suitable materials or equipment; (8) Contractor has abandoned the Work or the Project, and/or; (9) Contractor disregards proper directives of the architect, inspector, or Project Manager under the Contract Documents. It will be at City's sole discretion to allow Contractor to remedy each cause for the termination without waiving City's right to terminate this Contract or restricting any other right or remedy under this Contract or law.
In the event that this Contract is terminated for cause, City may take over the Work and may exclude Contractor from the Project site. In exercising the right to complete the Project, City, at its sole discretion, may pursue such completion in a manner that is cost effective, timely, and beneficial to City, including but not limited to demanding that the Surety take over and complete the Work. City may demand that the Surety not utilize Contractor in said performance of completing the Work. Upon failure of the Surety to begin completion of the Work, within fifteen (15) calendar days after demand thereof, City may take over the Work and pursue its completion.
Contractor and the Surety shall be liable for damages sustained by City from the termination of this Contract under this clause, including, without limitation all cost necessary for repair and completion of the work.
City shall have the right to withhold monies otherwise payable to Contractor until the Project is complete. If City incurs additional costs, expenses, or other damages due to the failure of Contractor to perform the Work pursuant to this Contract, said expenditures shall be deducted from the amounts withheld. Should there be a balance of monies held after all expenses have been paid, the balance will be paid to Contractor upon completion of the Project.
b. Termination for Convenience
City may terminate this Contract at any time for environmental considerations, its convenience, or when it is in the best interest of City.
Upon such termination, payment to Contractor shall be the actual cost of the Work completed, suitable storage and protection of materials and equipment delivered to the Project site, but not yet incorporated into the Work, and other costs actually incurred as permitted by this Contract and approved by City up to the effective date of termination. Ten percent (10%) of the actual cost of Work completed shall be allowed for overhead and profit providing that such payments do not exceed the total Contract Amount. The amount of any payments made to Contractor prior to the effective termination date shall be deducted from the actual costs of completed Work. Contractor shall not be entitled to any claim or lien against City for any additional compensation or damages in the event of termination of this Contract. c. Discontinuation of Work
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Upon receipt of the termination notice, Contractor shall immediately discontinue the Work and placement of orders for materials, facilities and supplies in connection with the performance of this Contract, unless otherwise directed in the notice. Contractor shall promptly deliver to City all completed work, including plans, as-builts, forms, reports, and products. Any dispute regarding the amount owed to Contractor shall not diminish the right of City to receive and use such documents or materials.
21. DISPUTE RESOLUTION PROCESS
Section 20104 et seq. of the California Public Contract Code prescribes a process utilizing informal conferences, non-binding judicial-supervised mediation, and judicial arbitration to resolve disputes on construction claims of $375,000 or less. Section 9204 of the Public Contract Code prescribes a process for negotiation and mediation to resolve disputes on construction claims. The intent of this Section is to implement Sections 20104 et seq. and Section 9204 of the California Public Contract Code. This Section shall be construed to be consistent with said statutes.
For purposes of these procedures, “claim” means a separate demand by the Contractor, after the City has denied Contractor’s timely and duly made request for payment for extra work and/or a time extension, for (A) a time extension, (B) payment of money or damages arising from work done by or on behalf of the Contractor pursuant to the Contract and payment of which is not otherwise expressly provided for or the Contractor is not otherwise entitled to, or (C) an amount the payment of which is disputed by the City.
The following requirements apply to all claims to which this Section applies:
a. Claim Submittal. The claim shall be in writing and include the documents necessary to substantiate the claim. Claims governed by this procedure must be filed on or before the date of final payment. Nothing in this Section is intended to extend the time limit or supersede notice requirements otherwise provided in the Contract for the filing of claims, including all requirements pertaining to compensation or payment for extra work, disputed work, and/or changed conditions. Failure to follow such contractual requirements shall bar any claims or subsequent lawsuits for compensation or payment thereon. b. Supporting Documentation. The Contractor shall submit all claims in the following format:
i. Summary of the claim, including references to the specific Contract Document provisions upon which the claim is based.
ii. List of documents relating to claim: (a) Specifications, (b) Drawings, (c) Clarifications (Requests for Information), (d) Schedules, and (e) Other. iii. Chronology of events and correspondence related to the claim. iv. Statement of grounds for the claim.
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v. Analysis of the claim's cost, if any.
vi. Analysis of the claim's time/schedule impact, if any. c. City's Response. Upon receipt of a claim pursuant to this Section, City shall conduct a reasonable review of the claim and, within a period not to exceed 45 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.
i. If the City needs approval from the City Council to provide the Contractor a written statement identifying the disputed portion and the undisputed portion of the claim, and the City Council does not meet within the 45 days or within the mutually agreed to extension of time following receipt of a claim sent by registered mail or certified mail, return receipt requested, the City shall have up to three days following the next duly publicly noticed meeting of the City Council after the 45-day period, or extension, expires to provide the Contractor a written statement identifying the disputed portion and the undisputed portion.
ii. Within 30 days of receipt of a claim, the City may request in writing additional documentation supporting the claim or relating to defenses or claims the City may have against the Contractor. If additional information is thereafter required, it shall be requested and provided pursuant to this subdivision, upon mutual Contract of City and the Contractor. iii. The City's written response to the claim, as further documented, shall be submitted to the Contractor within 30 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. d. Meet and Confer. If the Contractor disputes the City's written response, or the City fails to respond within the time prescribed, the Contractor may so notify the City, in writing, either within 15 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 an informal conference to meet and confer for settlement of the issues in dispute.
Upon receipt of a demand, the City shall schedule a meet and confer conference within 30 days for settlement of the dispute.
e. Mediation. Within 10 business days following the conclusion of the meet and confer conference, if the claim or any portion of the claim remains in dispute, the City shall provide the Contractor a written statement identifying the portion of the claim that remains in dispute and the portion that is undisputed. Any payment due on an undisputed portion of the claim shall be processed and made within 60 days after the City issues its written statement. Any disputed portion of the claim, as 48 01006.0006 2196644.1 9/21/2026 24
identified by the contractor in writing, shall be submitted to nonbinding mediation, with the City and the Contractor sharing the associated costs equally. The City and Contractor shall mutually agree to a mediator within 10 business days after the disputed portion of the claim has been identified in writing, unless the parties agree to select a mediator at a later time.
i. If the parties cannot agree upon a mediator, each party shall select a mediator and those mediators shall select a qualified neutral third party to mediate with regard to the disputed portion of the claim. Each party shall bear the fees and costs charged by its respective mediator in connection with the selection of the neutral mediator.
ii. For purposes of this Section, mediation includes any nonbinding process, including, but not limited to, neutral evaluation or a dispute review board, in which an independent third party or board assists the parties in dispute resolution through negotiation or by issuance of an evaluation. Any mediation utilized shall conform to the timeframes in this Section. iii. Unless otherwise agreed to by the City and the contractor in writing, the mediation conducted pursuant to this Section shall excuse any further obligation under Public Contract Code Section 20104.4 to mediate after litigation has been commenced.
iv. All unresolved claims shall be considered jointly in a single mediation, unless a new unrelated claim arises after mediation is completed. f. City's Responses. The City's failure to respond to a claim from the Contractor within the time periods described in this Section or to otherwise meet the time requirements of this Section shall result in the claim being deemed rejected in its entirety. A claim that is denied by reason of the City's failure to have responded to a claim, or its failure to otherwise meet the time requirements of this Section, shall not constitute an adverse finding with regard to the merits of the claim or the responsibility of qualifications of the Contractor. City's failure to respond shall not waive City's rights to any subsequent procedures for the resolution of disputed claims.
g. Government Code Claims. If following the mediation, the claim or any portion remains in dispute, the Contractor must comply with the claim procedures set forth in Government Code Section 900 et seq. prior to filing any lawsuit against the City.
Such Government Code claims and any subsequent lawsuit based upon the Government Code claims shall be limited to those matters that remain unresolved after all procedures pertaining to extra work, disputed work, construction claims, and/or changed conditions, including any required mediation, have been followed by Contractor. If no such Government Code claim is submitted, or if the prerequisite contractual requirements are not satisfied, no action against the City may be filed. A Government Code claim must be filed no earlier than the date that Contractor completes all contractual prerequisites to filing a Government Code 49 01006.0006 2196644.1 9/21/2026 25
claim, including any required mediation. A Government Code claim shall be inclusive of all unresolved claims unless a new unrelated claim arises after the Government Code claim is submitted. For purposes of Government Code Section 900 et seq., the running of the period of time within which a claim must be filed shall be tolled from the time the Contractor submits his or her written claim to the City until the time the claim is denied, including any period of time utilized by the meet and confer conference or mediation that does not result in a complete resolutions of all claims.
h. Civil Actions for Claims of $375,000 or Less. The following procedures are established for all civil actions filed to resolve claims totaling $375,000 or less:
i. Within 60 days, but no earlier than 30 days, following the filing or responsive pleadings, the court shall submit the matter to non-binding mediation unless waived by mutual stipulation of both parties or unless mediation was held prior to commencement of the action in accordance with Public Contract Code Section 9204 and the procedures in this Section. The mediation process shall provide for the selection within 15 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 or by stipulation of both parties. If the parties fail to select a mediator within the 15-day period, either party may petition the court to appoint the mediator.
ii. If the matter remains in dispute, the case shall be submitted to judicial arbitration pursuant to Chapter 2.5 (commencing with Section 1141.10) of Title 3 of Part 3 of the Code of Civil Procedure, notwithstanding Section 1141.11 of that code. The Civil Discovery Act (Title 4 (commencing with Section 2016.010) of Part 4 of the Code of Civil Procedure) shall apply to any proceeding brought under this subdivision consistent with the rules pertaining to judicial arbitration.
iii. Upon stipulation of the parties, arbitrators appointed for these purposes shall be experienced in construction law, and, upon stipulation of the parties, mediators and arbitrators shall be paid necessary and reasonable hourly rates of pay not to exceed their customary rate, and such fees and expenses shall be paid equally by the parties, except in the case of arbitration where the arbitrator, for good cause, determines a different division.
iv. In addition to Chapter 2.5 (commencing with Section 1141.10) of Title 3 of Part 3 of the Code of Civil Procedure, any party who after receiving an arbitration award requests a trial de novo but does not obtain a more favorable judgment shall, in addition to payment of costs and fees under that chapter, pay the attorney's fees of the other party arising out of the trial de novo.
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22. NOTICES
Any notice, demand, request, document, consent, approval, or communication either party desires or is required to give to the other party or any other person shall be in writing and either served personally or sent by prepaid, first-class mail, in the case of the City, to the City Manager and to the attention of the Project Manager (with her/his name and City title), City of Perris, 101 N. D Street, Perris, CA 92570 and in the case of the Contractor, to the person(s) at the address designated on the execution page of this Contract. Either party may change its address by notifying the other party of the change of address in writing. Notice shall be deemed communicated at the time personally delivered or in seventy-two (72) hours from the time of mailing if mailed as provided in this Section.
23. ATTORNEYS’ FEES
In the event that any action or proceeding is brought by either party to enforce any term or provision of this Contract, the prevailing party shall recover its reasonable attorney’s fees and costs incurred with respect thereto.
24. VENUE; CALIFORNIA LAW
Legal actions concerning any dispute, claim or matter arising out of or in relation to this Contract shall be instituted in the Superior Court of the County of Riverside, State of California, or any other appropriate court in such county, and Contractor agrees to submit to the personal jurisdiction of such court in the event of such action. This Contract shall be interpreted, construed and governed both as to validity and to performance of the parties in accordance with the laws of the State of California.
25. WAIVER
Waiver by any party to this Contract of any term, condition, or covenant of this Contract shall not constitute a waiver of any other term, condition, or covenant. Waiver by any party of any breach of the provisions of this Contract shall not constitute a waiver of any other provision or a waiver of any subsequent breach or violation of any provision of this Contract. Acceptance by City of any work or services by Contractor shall not constitute a waiver of any of the provisions of this Contract. No delay or omission in the exercise of any right or remedy by a non-defaulting party on any default shall impair such right or remedy or be construed as a waiver. Any waiver by either party of any default must be in writing and shall not be a waiver of any other default concerning the same or any other provision of this Contract.
26. RIGHTS AND REMEDIES ARE CUMULATIVE
Except with respect to rights and remedies expressly declared to be exclusive in this Contract, the rights and remedies of the parties are cumulative and the exercise by either party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other party.
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27. UNFAIR BUSINESS PRACTICES CLAIMS
Pursuant to Public Contract Code Section 7103.5, in entering into this Contract, Contractor offers and agrees to assign to the City all rights, title, and interest in and to all causes of action it may have under Section 4 of the Clayton Act (15 U.S.C. § 15) or under the Cartwright Act (Chapter 2, (commencing with Section 16700) of Part 2 of Division 7 of the Business and Professions Code), arising from purchases of goods, services or materials related to this Contract. This assignment shall be made and become effective at the time the City tenders final payment to the Contractor without further acknowledgment by the Parties.
28. UNAUTHORIZED ALIENS
Contractor hereby promises and agrees to comply with all of the provisions of the Federal Immigration and Nationality Act, 8 U.S.C. § 1101 et seq., as amended, and in connection therewith, shall not employ unauthorized aliens as defined therein. Should Contractor so employ such unauthorized aliens for the performance of work and/or services covered by this Contract, and should any liability or sanctions be imposed against City for such use of unauthorized aliens, Contractor hereby agrees to and shall reimburse City for the cost of all such liabilities or sanctions imposed, together with any and all costs, including attorneys' fees, incurred by City.
29. ACCOUNTS, RECORDS, REPORTS, AND RELEASE OF INFORMATION a. Records.
Contractor shall maintain accounts and records, including personnel, property, and financial records, adequate to identify and account for all costs pertaining to this Contract and such other records as may be deemed necessary by the City to assure proper accounting for all project funds, both federal and non-federal shares. These records will be made available for audit purposes to the City or any authorized representative and will be retained for three (3) years after the expiration of this Contract, unless permission to destroy them is granted by the City. In the event of dissolution of Contractor’s business, custody of the books and records may be given to City, and access shall be provided by Contractor’s successor in interest.
Notwithstanding the above, the Contractor shall fully cooperate with the City in providing access to the books and records if a public records request is made and disclosure is required by law including but not limited to the California Public Records Act.
b. Ownership of Documents.
All drawings, specifications, maps, designs, photographs, studies, surveys, data, notes, computer files, reports, records, documents and other materials (the “documents and materials”) prepared by Contractor, its employees, subcontractors and agents in the performance of this Contract shall be the property of City and shall be delivered to City upon request of the Project Manager or upon the termination of this Contract, and Contractor shall have no claim for further 52 01006.0006 2196644.1 9/21/2026 28
employment or additional compensation as a result of the exercise by City of its full rights of ownership use, reuse, or assignment of the documents and materials hereunder. Any use, reuse or assignment of such completed documents for other projects and/or use of uncompleted documents without specific written authorization by the Contractor will be at the City’s sole risk and without liability to Contractor, and Contractor’s guarantee and warranties shall not extend to such use, reuse or assignment. Contractor may retain copies of such documents for its own use. Contractor shall have an unrestricted right to use the concepts embodied therein. All subcontractors shall provide for assignment to City of any documents or materials prepared by them, and in the event Contractor fails to secure such assignment, Contractor shall indemnify City for all damages resulting therefrom.
Moreover, Contractor with respect to any documents and materials that may qualify as “works made for hire” as defined in 17 U.S.C. § 101, such documents and materials are hereby deemed “works made for hire” for the City. c. Reports.
Contractor shall periodically prepare and submit to the Project Manager such reports concerning the performance of the services required by this Contract as the Project Manager shall require. Contractor hereby acknowledges that the City is greatly concerned about the cost of work and services to be performed pursuant to this Contract. For this reason, Contractor agrees that if Contractor becomes aware of any facts, circumstances, techniques, or events that may or will materially increase or decrease the cost of the work or services contemplated herein, Contractor shall promptly notify the Project Manager of said fact, circumstance, technique or event and the estimated increased or decreased cost related thereto. d. Confidentiality and Release of Information.
i. Information gained or work product produced by Contractor in performance of this Contract shall be considered confidential, unless such information is in the public domain or already known to Contractor. Contractor shall not release or disclose any such information or work product to persons or entities other than City without prior written authorization from the Project Manager.
ii. Contractor, its officers, employees, agents or subcontractors, shall not, without prior written authorization from the Project Manager or unless requested by the City Attorney, voluntarily provide documents, declarations, letters of support, testimony at depositions, response to interrogatories or other information concerning the work performed under this Contract. Response to a subpoena or court order shall not be considered "voluntary" provided Contractor gives City notice of such court order or subpoena.
iii. If Contractor, or any officer, employee, agent or subcontractor of Contractor, provides any information or work product in violation of this 53 01006.0006 2196644.1 9/21/2026 29
Contract, then City shall have the right to reimbursement and indemnity from Contractor for any damages, costs and fees, including attorneys' fees, caused by or incurred as a result of Contractor's conduct. iv. Contractor shall promptly notify City should Contractor, its officers, employees, agents or subcontractors be served with any summons, complaint, subpoena, notice of deposition, request for documents, interrogatories, request for admissions or other discovery request, court order or subpoena from any party regarding this Contract and the work performed there under. City retains the right, but has no obligation, to represent Contractor or be present at any deposition, hearing or similar proceeding. Contractor agrees to cooperate fully with City and to provide City with the opportunity to review any response to discovery requests provided by Contractor. However, this right to review any such response does not imply or mean the right by City to control, direct, or rewrite said response.
30. NON-LIABILITY OF CITY OFFICERS AND EMPLOYEES
No elected or appointed official, officer, agent or employee of the City shall be personally liable to the Contractor, or any successor in interest, in the event of any default or breach by the City or for any amount which may become due to the Contractor or to its successor, or for breach of any obligation of the terms of this Contract.
31. INTERPRETATION
The terms of this Contract shall be construed in accordance with the meaning of the language used and shall not be construed for or against either party by reason of the authorship of this Contract or any other rule of construction which might otherwise apply.
32. COUNTERPARTS
This Contract may be executed in counterparts, each of which shall be deemed to be an original, and such counterparts shall constitute one and the same instrument, whether the signatures are originals, electronic, or digital.
33. INTEGRATION; AMENDMENT
This Contract including the attachments hereto is the entire, complete and exclusive expression of the understanding of the parties. It is understood that there are no oral Contracts between the parties hereto affecting this Contract and this Contract supersedes and cancels any and all previous negotiations, arrangements, Contracts and understandings, if any, between the parties, and none shall be used to interpret this Contract. No amendment to or modification of this Contract shall be valid unless made in writing and approved by the Contractor and by the City Council. The parties agree that this requirement for written modifications cannot be waived and that any attempted waiver shall be void.
34. SEVERABILITY
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In the event that any one or more of the phrases, sentences, clauses, paragraphs, or Sections contained in this Contract shall be declared invalid or unenforceable by a valid judgment or decree of a court of competent jurisdiction, such invalidity or unenforceability shall not affect any of the remaining phrases, sentences, clauses, paragraphs, or Sections of this Contract which are hereby declared as severable and shall be interpreted to carry out the intent of the parties hereunder unless the invalid provision is so material that its invalidity deprives either party of the basic benefit of their bargain or renders this Contract meaningless.
35. CONFLICT OF INTEREST
Contractor covenants that neither it, nor any officer or principal of its firm, has or shall acquire any interest, directly or indirectly, which would conflict in any manner with the interests of City or which would in any way hinder Contractor’s performance of work under this Contract. Contractor further covenants that in the performance of this Contract, no person having any such interest shall be employed by it as an officer, employee, agent or subcontractor without the express written consent of the Project Manager. Contractor agrees to at all times avoid conflicts of interest or the appearance of any conflicts of interest with the interests of City in the performance of this Contract.
No officer or employee of the City shall have any financial interest, direct or indirect, in this Contract nor shall any such officer or employee participate in any decision relating to the Contract which affects his or her financial interest or the financial interest of any corporation, partnership or association in which he or she is, directly or indirectly, interested, in violation of any State statute or regulation. The Contractor warrants that it has not paid or given and will not pay or give any third party any money or other consideration for obtaining this Contract.
36. WARRANTY & REPRESENTATION OF NON-COLLUSION
No elected or appointed official, officer, agent or employee of City has any financial interest, direct or indirect, in this Contract, nor shall any official, officer, or employee of City participate in any decision relating to this Contract which may affect his/her financial interest or the financial interest of any corporation, partnership, or association in which (s)he is directly or indirectly interested, or in violation of any corporation, partnership, or association in which (s)he is directly or indirectly interested, or in violation of any State or municipal statute or regulation. The determination of "financial interest" shall be consistent with State law and shall not include interests found to be "remote" or "noninterests" pursuant to Government Code Sections 1091 or 1091.5. Contractor warrants and represents that it has not paid or given, and will not pay or give, to any third party including, but not limited to, any City elected or appointed official, officer, or employee, any money, consideration, or other thing of value as a result or consequence of obtaining or being awarded any Contract. Contractor further warrants and represents that (s)he/it has not engaged in any act(s), omission(s), or other conduct or collusion that would result in the payment of any money, consideration, or other thing of value to any third party including, but not limited to, any City official, officer, or employee, as a result of consequence of obtaining or being awarded any Contract. Contractor is aware of and understands that any 55 01006.0006 2196644.1 9/21/2026 31
such act(s), omission(s) or other conduct resulting in such payment of money, consideration, or other thing of value will render this Contract void and of no force or effect.
37. AUTHORITY TO EXECUTE
The persons executing this Contract on behalf of the parties hereto warrant that (i) such party is duly organized and existing, (ii) they are duly authorized to execute and deliver this Contract on behalf of said party, (iii) by so executing this Contract, such party is formally bound to the provisions of this Contract, and (iv) the entering into this Contract does not violate any provision of any other Contract to which said party is bound. [SIGNATURES ON FOLLOWING PAGE]
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IN WITNESS WHEREOF, the parties hereto have caused this Contract to be duly executed with all the formalities required by law on the respective dates set forth opposite their signatures.
CITY OF PERRIS,
a California municipal corporation
BY: ATTEST:
Clara Miramontes, City Manager Nancy Salazar, City Clerk DATE:
APPROVED AS TO FORM:
ALESHIRE & WYNDER, LLP
Sunny K. Soltani, City Attorney
[pks; rjl]
[SIGNATURES CONTINUE ON NEXT PAGE]
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CONTRACTOR
CONTRACTOR NAME:
Ybanag Realty and Development
Corporation, a California corporation dba
D’Ybanag Construction Company
CONTRACTOR’S ADDRESS:
24930 State Highway 74
Perris, CA 92570
STATE OF CALIFORNIA
CONTRACTOR’S LICENSE NUMBER:
920531
CONTRACTOR’S LICENSE
EXPIRATION DATE:
8/31/28
CONTRACTOR’S BUSINESS
TELEPHONE NUMBER:
626-318-8904
EMERGENCY TELEPHONE NUMBER:
BY: BY:
NAME: NAME:
TITLE: TITLE:
DATE: DATE:
*Two corporate officer signatures required when Contractor is a corporation, with one signature required from each of the following groups: 1) Chairman of the Board, President or any Vice President; and 2) Secretary, any Assistant Secretary, Chief Financial Officer or any Assistant Treasurer. APPROPRIATE ATTESTATIONS SHALL BE INCLUDED
AS MAY BE REQUIRED BY THE BYLAWS, ARTICLES OF INCORPORATION, OR OTHER RULES OR REGULATIONS APPLICABLE TO CONTRACTOR’S BUSINESS ENTITY.
[END SIGNATURES]
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EXHIBIT “A”
BOND FORMS
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PERFORMANCE BOND
City Project Name: The Storm Drain, Channel,
and Basin Maintenance, and Rehabilitation Project
City Project No.: 2026-01
We, Ybanag Realty and Development Corporation, a California corporation dba D’Ybanag Construction Company, as Principal, and ____________, as Surety, jointly and severally, firmly bind ourselves, our heirs, representatives, successors and assigns, as set forth herein, to the City of Perris (“City”) for payment of the penal sum of Three Hundred Eighty-Four Thousand Nine Hundred Twenty-Eight Dollars ($384,928.00). City and Principal have entered into an agreement, or are about to enter into the agreement attached hereto and incorporated by reference herein, for completion of public works for the property(ies) referenced in said agreement and with the City Project Name: The Storm Drain, Channel, and Basin Maintenance, and Rehabilitation Project and City Project Number: 2026-01. Surety herein approves of the terms and conditions of said agreement and binds itself to faithfully perform the obligations of Principal therein if Principal fails to so perform. Surety acknowledges that the agreement herein referenced shall be that document as executed by City and Principal.
THE CONDITION OF THIS OBLIGATION IS SUCH that if the Principal shall in all things stand to and abide by, and well and truly keep and perform all of the covenants, conditions, and provisions in said agreement, and any alteration thereof made as therein provided, on Principal's part to be kept and performed at the time and in the manner therein specified, and shall indemnify and save harmless the City, City’s engineer, and their consultants, and each of their officials, directors, officers, employees and agents, as therein stipulated, then this obligation shall become null and void; otherwise, it shall be and remain in full force and effect.
Surety agrees that should it fail to take over and diligently perform the agreement upon Principal's default after notice and within the time specified in the agreement, Surety will promptly on demand deposit with City such amount as City may reasonably estimate as the cost of completing all of Principal's obligations. Surety's obligation for payment herein shall exist, notwithstanding any controversy between Principal and City regarding Principal's failure under the agreement, and payment by Surety should be conclusively presumed between the parties herein to relieve, as demanded, Surety's obligations herein and shall be deemed proper payment as between Principal and Surety.
Surety agrees that no change, extension of time, alteration, or addition to the terms of the agreement, or the work to be performed thereunder or the plans and specifications, or any matters unknown to Surety which may affect Surety's risk shall in any wise affect its obligation on this bond, and it does thereby waive notice thereof.
Principal and Surety agree that if the City is required to engage the services of an attorney in connection with the enforcement of this bond, each shall pay City's reasonable attorneys' fees incurred, with or without suit, in addition to the above sum.
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Executed this day of _________, ____.
Seal of Corporation _____________
By:____________________________________
Authorized Representative of Principal
Title: _____________
(ATTACH ACKNOWLEDGEMENT OF AUTHORIZED REPRESENTATIVES)
Any claims under this bond may be addressed to: (check one) Surety's agent for service
of process in California: ( ) _____________________
[name of surety company]
_________________________ ____________________________________ Name Street Number
_________________________ ____________________________________ Street Number City and State
_________________________ ____________________________________ City and State Telephone Number
_________________________
Telephone Number
By:____________________________________
Attorney in Fact or other
Representative
(ATTACH ACKNOWLEDGEMENT OF AUTHORIZED REPRESENTATIVE)
Furnish the name, address and phone number of the company agent as well as the surety company.
Sureties must be authorized to do business in and have an agent for service of process in California and be on the accredited list of the United States Treasury Department (their bonds will be limited to such amounts as would be acceptable to the Treasury Department), and otherwise meet the requirements of the agreement.
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PAYMENT BOND
City Project Name: The Storm Drain, Channel,
and Basin Maintenance, and Rehabilitation Project
City Project No.: 2026-01
We, Ybanag Realty and Development Corporation, a California corporation dba D’Ybanag Construction Company, as Principal, and ____________, as Surety, jointly and severally, firmly bind ourselves, our heirs, representatives, successors and assigns, as set forth herein, to the City of Perris (“City”) and those for whose benefit this bond insures in the sum of Three Hundred Eighty-Four Thousand Nine Hundred Twenty-Eight Dollars ($384,928.00). City and Principal have entered into an agreement, or are about to enter into the agreement attached hereto and incorporated by reference herein, for completion of public works for the property(ies) referenced in said agreement and with the City Project Name: The Storm Drain, Channel, and Basin Maintenance, and Rehabilitation Project and City Project Number: 2026-01. Surety herein approves of the terms and conditions of said agreement and binds itself to faithfully perform the obligations of Principal therein if Principal fails to so perform. Surety acknowledges that the agreement herein referenced shall be that document as executed by City and Principal. If Principal or any of Principal's contractors or subcontractors, fails to pay any of the persons named in Section 9000 et seq. of the California Civil Code employed in the performance of the agreement for materials furnished or for labor thereon of any kind, or for amounts due under the Unemployment Insurance Code with respect to such work or labor, then Surety shall pay the same in an amount not exceeding the sum specified above, and also shall pay, in case suit is brought upon this bond, such reasonable attorneys' fees as shall be fixed by the court.
Surety agrees that it shall pay the amounts due the persons above named and diligently perform the agreement upon Principal's default after notice and within the time specified in the agreement.
If Surety fails to perform within the times specified in the agreement, Surety shall promptly on demand deposit with City such amount as City may reasonably estimate as the cost of completing all of Principal's obligations. Surety's obligation for payment herein shall extend, notwithstanding any controversy between Principal and City regarding Principal's failure under the agreement.
Principal and Surety agree that any payment by Surety pursuant to this paragraph should be conclusively presumed between the parties herein to relieve, as demanded, Surety's obligation herein and shall be deemed proper payment as between Principal and Surety.
This bond shall insure to the benefit of any and all of the persons named in Section 9000 et seq. of the California Civil Code so as to give a right of action to them or their assigns in any suit brought upon this bond.
Surety agrees that no change, extension of time, alteration, or addition to the terms of the agreement, or the work to be performed thereunder, or the plans and specifications, or any matters unknown to Surety which might affect Surety's risk, shall in any way affect its obligation on this bond, and it does hereby waive notice thereof.
Principal and Surety agree that should City become a party to any action on this bond, that each will also pay City's reasonable attorneys' fees incurred therein in addition to the above sums. 62 01006.0006 2196644.1 9/21/2026 38
Executed this _____________ day of ___________, ______.
Seal of Corporation ______________
By:______________________________
Authorized Representative of Principal
Title: __________
(ATTACH ACKNOWLEDGEMENT OF AUTHORIZED REPRESENTATIVES)
Any claims under this bond may be addressed to: (check one) Surety's agent for service
of process in California: ( ) ________________
[name of surety]
_________________________ _____________________________ Name Street Number
_________________________ _____________________________ Street Number City and State
_________________________ _____________________________ City and State Telephone Number
_________________________
Telephone Number
By:_____________________________
Attorney in Fact or other
Representative
(ATTACH ACKNOWLEDGEMENT OF AUTHORIZED REPRESENTATIVE)
Furnish the name, address and phone number of the company agent as well as the surety company.
Sureties must be authorized to do business in and have an agent for service of process in California and be on the accredited list of the United States Treasury Department (their bonds will be limited to such amounts as would be acceptable to the Treasury Department), and otherwise meet the requirements of the agreement.
63 ATTACHMENT 3
BID FORM
64 65
66 67
ATTACHMENT 4
BID RESULTS
68 City of Perris
Submissions for Solicitation Storm Drain, Channel, and Basin Maintenance and Rehabilitation Project (2026-01) Issued on 08/17/2026
Submissions Due on September 11, 2026 11:00 AM (PDT)
Exported on 09/14/2026
Line Totals (Unit Price * Quantity)
Item
Num
Item
Code Description
Unit of
Measure Quantity
Ybanag Realty &
Developement Corp
Jeremy Harris
Construction Inc.
Downstream
Services, Inc.
Gentry General
Engineering, Inc
EBS GENERAL
ENGINEERING,
INC.
Matcon General
Engineering Inc.
Leonida
Builders, Inc.
United Storm
Water, Inc.
1 1A Clean Reinforced Concrete Box Channel LF 1150 $29,900.00 $18,400.00 $8,050.00 $28,750.00 $33,350.00 $26,772.00 $34,500.00 $73,600.00 2 1B Patch Chainlink Fence in Trap Channel SF 16 $1,200.00 $800.00 $1,648.00 $1,120.00 $1,168.00 $7,713.44 $3,200.00 $1,520.00 3 1C Clean SD Pipe Over 36" LF 1300 $29,900.00 $39,000.00 $9,100.00 $26,000.00 $26,000.00 $43,433.00 $32,500.00 $62,400.00 4 1D
Clean Reinforced Concrete Box [(2) 6'WX4'H].
(Length Total For Both) LF 160 $6,400.00 $11,200.00 $4,480.00 $16,000.00 $16,960.00 $13,600.00 $8,000.00 $40,000.00 5 1E
Maintain Trapezoidal Earthern Channel (25'W
From Top of Slope) LF 180 $7,200.00 $16,200.00 $2,880.00 $3,600.00 $3,420.00 $14,346.00 $14,400.00 $21,600.00 6 1F Clean Reinforced Concrete Box (6'WX6'H) LF 130 $5,200.00 $7,540.00 $3,250.00 $8,450.00 $8,710.00 $11,817.00 $20,800.00 $15,600.00 7 1G
Maintain Trapezoidal Earthern Channel (25'W
From Top of Slope) LF 4000 $60,000.00 $24,000.00 $8,000.00 $28,000.00 $32,000.00 $47,480.00 $160,000.00 $56,000.00 8 1H Clean Reinforced Concrete Box (14W'X7.5'H) LF 1300 $39,000.00 $26,000.00 $40,300.00 $65,000.00 $74,100.00 $56,147.00 $52,000.00 $325,000.00 9 2A Lot M Basin Maintenance (See Exhibit 2A) LS 1 $16,000.00 $30,000.00 $35,404.00 $58,000.00 $63,142.00 $48,032.00 $15,000.00 $125,000.00 10 2B Lot K Basin Maintenance (See Exhibit 2B) LS 1 $22,000.00 $31,000.00 $37,446.00 $58,000.00 $67,776.00 $59,532.00 $20,000.00 $145,000.00 11 2C Lot N Basin Maintenance (See Exhibit 2C) LS 1 $16,000.00 $30,000.00 $10,917.00 $38,000.00 $43,706.00 $34,347.00 $20,000.00 $49,000.00 12 3C Clean SD Pipe Over 36" LF 120 $3,600.00 $12,000.00 $2,640.00 $6,000.00 $6,960.00 $11,238.00 $6,000.00 $5,760.00 13 3A
Clean Reinforced Concrete Box [(2) 8.5'WX5'H].
(Length Total For Both) LF 5750 $85,100.00 $86,250.00 $120,750.00 $143,750.00 $161,000.00 $227,585.00 $287,500.00 $1,437,500.00 14 3B
Maintain Trapezoidal Earthern Channel (25'W
From Top of Slope) LF 1060 $26,500.00 $14,840.00 $4,240.00 $10,600.00 $10,600.00 $12,773.00 $53,000.00 $14,840.00 15 4A Clean SD Pipe Over 36" LF 720 $14,400.00 $28,800.00 $4,320.00 $14,400.00 $17,280.00 $26,784.00 $36,000.00 $34,560.00 Subtotal $362,400.00 $376,030.00 $293,425.00 $505,670.00 $566,172.00 $641,599.44 $762,900.00 $2,407,380.00 16 5A
AUTHORIZED EXCESS MATERIAL REMOVAL AND
DISPOSAL TON 256 $22,528.00 $32,000.00 $123,392.00 $17,920.00 $19,968.00 $28,288.00 $64,000.00 $83,200.00 Subtotal $22,528.00 $32,000.00 $123,392.00 $17,920.00 $19,968.00 $28,288.00 $64,000.00 $83,200.00 Total $384,928.00 $408,030.00 $416,817.00 $523,590.00 $586,140.00 $669,887.44 $826,900.00 $2,490,580.00 69 ATTACHMENT 5
IMPROVEMENT PLANS
70 BRENNAN AVE
RAMONA EXPY
INDIAN ST
2 9
2 4120
4130
731
3984
731
4120
4130
3984
Line E 6'x10' RCB
ParcelQuest creates and markets real estate information databases, which data has been recorded, calculated, processed, formatted, and presented Parcels
Parcels Riverside County
Flood Control Boundaries - HOA
Outfalls
Inlets
BOX-DI
CMP-DI
CMP-IR
CSP Inlet
Concrete
Drop Inlet
Grated Inlet
Inlet Box
Inlet Riser
Unknown
Transitions
Pumps
Conspan Units
Manholes
MH Station
Station
Unknown
Rip Rap
Hydrodynamic Separators
Channels
Earthen Channel
Concrete Channel
V Ditch
Concrete Path
Infiltration Basins
Catch Basins
REGULAR CB
CB W/CPS UNIT
CB W/WCS AR SCREEN
CB W/REM INLET FILTER
CB W/ARS SCR. & REM INLET
CB W/Grated Inlet
CB W/CPS & REM INLET
CB W/GRATED INLET & CPS
CB W/CPS & ARS CREEN
CB W/CPS
RCFC Line
Basins
6"
Cast In Place
4 48
54 8/3/2026, 11:09:18 AM
0 0.01 0.03 0.06 mi
0 0.03 0.06 0.11 km
1:2,446
LEGEND
1A - CLEAN REINFORCED CONRETE BOX CHANNEL.
REMOVE SEDIMENT, TRASH DEBRIS. (6'BX10'H)
1B - PATCH CHAINLINK APPROXIMATELY 4'X4'.
1D - CLEAN DOUBLE REINFORCED CONRETE BOX.
REMOVE TRASH, DEBRIS, AND SEDIMENT BUILDUP
ALONG BOTTOM[(2) 6'WX4'H]. PROVIDE
POST-WORK CCTV FOOTAGE WITH 360° VIEWS OF
PIPE JOINTS AND A PIPE CONDITION RATING
REPORT. IT HAS BEEN NOTED HAND CLEANING
MAY BE REQUIRED TO COMPLETE THIS WORK.
APPOXIMATE
LOCATION OF LINE
ITEM 1B
1A 1 - Line E - Concrete Box and Earthern Channel Maintenance 1D
ID 3703 ID 237 71
RAMONA EXPY
INDIAN ST
BARRETT AVE
1 8
4 11
2 1
10 10
4111
4120
4130
3984 31
131
4120
4111
4130
3984 31
1 - Line E - Concrete Box and Earthern Channel Maintenance ParcelQuest creates and markets real estate information databases, which data has been recorded, calculated, processed, formatted, and presented Parcels
Parcels Riverside County
Outfalls
Inlets
BOX-DI
CMP-DI
CMP-IR
CSP Inlet
Concrete
Drop Inlet
Grated Inlet
Inlet Box
Inlet Riser
Unknown
Transitions
Pumps
Conspan Units
Manholes
MH Station
Station
Unknown
Rip Rap
Hydrodynamic Separators
Channels
Earthen Channel
Concrete Channel
V Ditch
Concrete Path
Infiltration Basins
Catch Basins
REGULAR CB
CB W/CPS UNIT
CB W/WCS AR SCREEN
CB W/REM INLET FILTER
CB W/ARS SCR. & REM INLET
CB W/Grated Inlet
CB W/CPS & REM INLET
CB W/GRATED INLET & CPS
CB W/CPS & ARS CREEN
CB W/CPS & REM
RCFC Line
6"
Cast In Place Concrete
4 48
54 72
8/5/2026, 3:24:20 PM
0 0.02 0.04 0.07 mi
0 0.03 0.06 0.11 km
1:2,531
LEGEND
1H - CLEAN REINFORCED
CONRETE BOX. REMOVE
TRASH, DEBRIS, AND
SEDIMENT BUILDUP ALONG
BOTTOM (14W'X7.5'H). IT HAS
BEEN NOTED HAND
CLEANING WITH VACCUM
TRUCK MAY BE REQUIRED TO
COMPLETE THIS WORK.
ID 287
1H
72 RAMONA EXPY
JOHNSON AVE
PERRIS BLVD
8 11
1 9
3 2
4039 64
118
120
353
375
379
3977
3995 85 115 145 185
80 3977 145
Line E RCB and Earthern Channel
ParcelQuest creates and markets real estate information databases, which data has been recorded, calculated, processed, formatted, and presented Parcels
Parcels Riverside County
Flood Control Boundaries - HOA
Outfalls
Inlets
BOX-DI
CMP-DI
CMP-IR
CSP Inlet
Concrete
Drop Inlet
Grated Inlet
Inlet Box
Inlet Riser
Unknown
Transitions
Pumps
Conspan Units
Manholes
MH Station
Station
Unknown
Rip Rap
Hydrodynamic Separators
Channels
Earthen Channel
Concrete Channel
V Ditch
Concrete Path
Infiltration Basins
Catch Basins
REGULAR CB
CB W/CPS UNIT
CB W/WCS AR SCREEN
CB W/REM INLET FILTER
CB W/ARS SCR. & REM INLET
CB W/Grated Inlet
CB W/CPS & REM INLET
CB W/GRATED INLET & CPS
CB W/CPS & ARS CREEN
CB W/CPS
RCFC Line
Basins
6"
Cast In Place
4 48
54 8/3/2026, 11:11:20 AM
0 0.03 0.06 0.11 mi
0 0.04 0.09 0.18 km
1:4,076
LEGEND
1E - MAINTAIN TRAPEZOIDAL CHANNEL
(25'W FROM TOP OF SLOPE). TO INCLUDE
WEED CONTROL ALONG SIDE SLOPES,
AND FLOW LINES. REMOVE TRASH,
DEBRIS, AND SEDIMENT BUILDUP ALONG
CHANNEL BOTTOM.
1F - CLEAN REINFORCED CONRETE BOX
(6'WX6'H). REMOVE TRASH, DEBRIS, AND
SEDIMENT BUILDUP ALONG BOTTOM.
1G - MAINTAIN TRAPEZOIDAL CHANNEL
(25'W FROM TOP OF SLOPE). INCLDUING
WEED CONTROL ALONG SIDE SLOPES,
AND FLOW LINES. REMOVE TRASH,
DEBRIS, AND SEDIMENT BUILDUP ALONG
CHANNEL BOTTOM.
1E 1F 1G
1 - Line E - Concrete Box and Earthern Channel Maintenance ID 16 73 RAMONA EXPY
KITCHING ST R
E
D
LA
N
D
S
AV
E
1 2
353
375
353
375
Line E 48" CMP
ParcelQuest creates and markets real estate information databases, which data has been recorded, calculated, processed, formatted, and presented Parcels
Parcels Riverside County
Flood Control Boundaries - HOA
Outfalls
Inlets
BOX-DI
CMP-DI
CMP-IR
CSP Inlet
Concrete
Drop Inlet
Grated Inlet
Inlet Box
Inlet Riser
Unknown
Transitions
Pumps
Conspan Units
Manholes
MH Station
Station
Unknown
Rip Rap
Hydrodynamic Separators
Channels
Earthen Channel
Concrete Channel
V Ditch
Concrete Path
Infiltration Basins
Catch Basins
REGULAR CB
CB W/CPS UNIT
CB W/WCS AR SCREEN
CB W/REM INLET FILTER
CB W/ARS SCR. & REM INLET
CB W/Grated Inlet
CB W/CPS & REM INLET
CB W/GRATED INLET & CPS
CB W/CPS & ARS CREEN
CB W/CPS
RCFC Line
Basins
6"
Cast In Place
4 48
54 8/3/2026, 11:13:25 AM
0 0.01 0.03 0.06 mi
0 0.03 0.06 0.11 km
1:2,446
LEGEND
1C - CLEAN SD PIPE OVER 36" TO
INCLUDE CCTV FOOTAGE OF ENTIRE
LENGTH. PIPE JOINTS SHALL BE HAVE
FOOTAGE 360 DEGREES. REPORT SHALL
INCLUDE PIPE RATING REPORT.
1C
1 - Line E - Concrete Box and Earthern Channel Maintenance ID 30
3169
3170
ID
470 74
NOGALES AVE TURISMO LN
YORBA ST
MORAGA AVE
21 38
39 FC 77
1085
1045 1077
1037
1054
1075
1848 1069
1860
1062 1086
1083
1067
1920
1053 1061
1070 1078
1051 1059
1085
1045 1077
1037
1054
1075
1053 1061
1070 1078
1051 1059
1848
1860
1062 1086
1067 1083
1920
1069
2A - Lot M Basin Maintenance
ParcelQuest creates and markets real estate information databases, which data has been recorded, calculated, processed, formatted, and presented Parcels
Parcels Riverside County
Flood Control Boundaries- GF
Flood Control Boundaries - HOA
Flood Control Boundaries - DF
Outfalls
Inlets
BOX-DI
CMP-DI
CMP-IR
CSP Inlet
Concrete
Drop Inlet
Grated Inlet
Inlet Box
Inlet Riser
Unknown
Transitions
Pumps
Conspan Units
Manholes
MH Station
Station
Unknown
Rip Rap
Hydrodynamic Separators
Channels
Earthen Channel
Concrete Channel
V Ditch
Concrete Path
Infiltration Basins
Catch Basins
REGULAR CB
CB W/CPS UNIT
CB W/WCS AR SCREEN
CB W/REM INLET FILTER
CB W/ARS SCR. & REM INLET
CB W/Grated Inlet
CB W/CPS & REM INLET
CB W/GRATED INLET & CPS
CB W/CPS &
CB W/CPS &
RCFC Line
6"
Cast In Place
4 48
54 8/4/2026, 2:21:57 PM
0 0.01 0.01 0.02 mi
0 0.01 0.02 0.04 km
1:911
2A
RELOCATE AND ADD 5-FOOT BLACK
METAL FENCE ALONG BOUNDARY
OF MOW CURB NORTH AND SOUTH
SIDE OF BASIN. RELOCATE GATE
ALONG BOUNDARY FOR BASIN
ACCESS FOR BOTH NORTH AND
SOUTH SIDES. (~125LF FENCE
LENGTH EACH SIDE)
LEGEND
2A, 2B, 2C - PERFORM BASIN
MAITENANCE. SEE CALLOUTS HEREIN
FOR FURTHER DETAIL. WORK TO
INCLUDE WEED CONTROL FOR ENTIRE
BASIN PARCEL. REMOVE TRASH, DEBRIS,
AND SEDIMENT BUILDUP.
REMOVE SEDIMENT AND
VEGETATION FROM THE
FIRST-FLUSH STORAGE AREA
(APP 1,900 SF). CLEAN AND
RESTORE THE GRAVEL
BACKFILL AND
WATER-QUALITY OPENING PER
THE APPROVED PLANS TO
ENSURE THE STORAGE AREA
DRAINS AS DESIGNED.
REMOVE SEDIMENT AND
VEGETATION BUILDUP WITHIN
THE HEADWALLS (2) AND
RIPRAP APRON AT HEADWALL.
REGRADE AND RESET RIPRAP
PER APPROVED PLANS TO
RESTORE THE DESIGNATED
FLOW PATH TO PCC EDGEAND
PROVIDE POSITIVE DRAINAGE
WITH NO PONDING.
CONSTRUCT 6" CURB CUT AT
PCC EDGE. LOCATION WHERE
FLOWLINE WILL BE RESET.
75 RECLUSA ST NOGALES AVE
PERLA ST
LAGUNA ST
14 28
29 49
FC 77
1038 1046
2172
1079
1055
1047
2177 1054 1062
1075
1070
2112
2105
1076
1084
1071
1063
1075
1038 1046
1083
1055 1079
1047
1070
2172
2177 1054 1062
1063 1071 2105
1076 1084
2112
2B - Lot K Basin Maintenance
ParcelQuest creates and markets real estate information databases, which data has been recorded, calculated, processed, formatted, and presented Parcels
Parcels Riverside County
Flood Control Boundaries- GF
Flood Control Boundaries - HOA
Flood Control Boundaries - DF
Outfalls
Inlets
BOX-DI
CMP-DI
CMP-IR
CSP Inlet
Concrete
Drop Inlet
Grated Inlet
Inlet Box
Inlet Riser
Unknown
Transitions
Pumps
Conspan Units
Manholes
MH Station
Station
Unknown
Rip Rap
Hydrodynamic Separators
Channels
Earthen Channel
Concrete Channel
V Ditch
Concrete Path
Infiltration Basins
Catch Basins
REGULAR CB
CB W/CPS UNIT
CB W/WCS AR SCREEN
CB W/REM INLET FILTER
CB W/ARS SCR. & REM INLET
CB W/Grated Inlet
CB W/CPS & REM INLET
CB W/GRATED INLET & CPS
CB W/CPS &
CB W/CPS &
RCFC Line
6"
Cast In Place
4 48
54 8/4/2026, 3:26:36 PM
0 0.01 0.01 0.02 mi
0 0.01 0.02 0.04 km
1:911 LEGEND
2A, 2B, 2C - PERFORM BASIN
MAITENANCE. SEE CALLOUTS HEREIN
FOR FURTHER DETAIL. WORK TO
INCLUDE WEED CONTROL FOR ENTIRE
BASIN PARCEL. REMOVE TRASH, DEBRIS,
AND SEDIMENT BUILDUP.
REMOVE SEDIMENT AND
VEGETATION FROM THE
FIRST-FLUSH STORAGE AREA
(APP. 3,000 SF). CLEAN AND
RESTORE THE GRAVEL
BACKFILL AND
WATER-QUALITY OPENING PER
THE APPROVED PLANS TO
ENSURE THE STORAGE AREA
DRAINS AS DESIGNED.
REMOVE SEDIMENT AND
VEGETATION BUILDUP
WITHIN THE HEADWALLS
(2) AND RIPRAP APRON AT
HEADWALL. REGRADE AND
RESET RIPRAP PER
APPROVED PLANS TO
RESTORE THE
DESIGNATED FLOW PATH
TO PCC EDGEAND
PROVIDE POSITIVE
DRAINAGE WITH NO
PONDING. CONSTRUCT 6"
CURB CUT AT PCC EDGE.
LOCATION WHERE
FLOWLINE WILL BE RESET.
2B
RELOCATE AND ADD 5-FOOT
BLACK METAL FENCE ALONG
BOUNDARY OF MOW CURB
NORTH AND SOUTH SIDE OF
BASIN. RELOCATE GATE ALONG
BOUNDARY FOR BASIN ACCESS
FOR BOTH NORTH AND SOUTH
SIDES. (~125LF FENCE LENGTH
EACH SIDE)
76 MESCAL ST
ORANGE AVE
CORTINA GATE
LA MESA WAY
6 7
8 FC 77
26400
1126
1091 1099
1123
1092 1100 1108
1078
2270
1036
1083
1116
1068
1028 1052 1060
1086 1094
1107
1102
1115
1084
2282
1124
1070
1020 1044
1012
1004
1084 1092 1100 1108
1116
1126
1091 1099
1123
1078
2270
1036
1102
1115
2282
1086 1094
1083 1107
1124
1070
1020 1028 1044 1052 1060 1068 1012
1004
2C - Lot N Basin Maintenance
ParcelQuest creates and markets real estate information databases, which data has been recorded, calculated, processed, formatted, and presented Parcels
Parcels Riverside County
Flood Control Boundaries- GF
Flood Control Boundaries - HOA
Flood Control Boundaries - DF
Outfalls
Inlets
BOX-DI
CMP-DI
CMP-IR
CSP Inlet
Concrete
Drop Inlet
Grated Inlet
Inlet Box
Inlet Riser
Unknown
Transitions
Pumps
Conspan Units
Manholes
MH Station
Station
Unknown
Rip Rap
Hydrodynamic Separators
Channels
Earthen Channel
Concrete Channel
V Ditch
Concrete Path
Infiltration Basins
Catch Basins
REGULAR CB
CB W/CPS UNIT
CB W/WCS AR SCREEN
CB W/REM INLET FILTER
CB W/ARS SCR. & REM INLET
CB W/Grated Inlet
CB W/CPS & REM INLET
CB W/GRATED INLET & CPS
CB W/CPS &
CB W/CPS &
RCFC Line
6"
Cast In Place
4 48
54 8/5/2026, 7:54:07 AM
0 0.01 0.02 0.04 mi
0 0.01 0.03 0.06 km
1:1,519 LEGEND
2A, 2B, 2C - PERFORM BASIN
MAITENANCE. SEE CALLOUTS HEREIN
FOR FURTHER DETAIL. WORK TO
INCLUDE WEED CONTROL FOR ENTIRE
BASIN PARCEL. REMOVE TRASH, DEBRIS,
AND SEDIMENT BUILDUP.
REMOVE SEDIMENT AND
VEGETATION BUILDUP WITHIN
THE HEADWALL AND RIPRAP
APRON AT HEADWALL. REGRADE
AND RESET RIPRAP PER
APPROVED PLANS TO RESTORE
THE DESIGNATED FLOW PATH TO
PCC EDGE AND PROVIDE
POSITIVE DRAINAGE WITH NO
PONDING. CONSTRUCT 6" CURB
CUT AT PCC EDGE. LOCATION
WHERE FLOWLINE WILL BE
RESET.
REMOVE SEDIMENT AND
VEGETATION FROM THE
FIRST-FLUSH STORAGE AREA
(APP 1,400 SF). CLEAN AND
RESTORE THE GRAVEL
BACKFILL AND
WATER-QUALITY OPENING PER
THE APPROVED PLANS TO
ENSURE THE STORAGE AREA
DRAINS AS DESIGNED.
2C 77
PERRIS BLVD
JOHNSON AVE
KITCHING ST
ADAMS ST
VERONICA AVE
GLORIOSA AVE
BOTAN ST
REDLANDS AVE
DAWES ST
MORGAN ST
SINCLAIR ST
1 2
1 8
7 6 5
4 3
2 37
36 35
24 20
23 21
22 1
2 3
10 8 9
10 11 1
PK 16
FC GF 25
3 - Line G - Concrete Box and Concrete Channel Maintenance ParcelQuest creates and markets real estate information databases, which data has been recorded, calculated, processed, formatted, and presented Parcels
Parcels Riverside County
Flood Control Boundaries- GF
Outfalls
Inlets
BOX-DI
CMP-DI
CMP-IR
CSP Inlet
Concrete
Drop Inlet
Grated Inlet
Inlet Box
Inlet Riser
Unknown
Transitions
Pumps
Conspan Units
Manholes
MH Station
Station
Unknown
Rip Rap
Hydrodynamic Separators
Channels
Earthen Channel
Concrete Channel
V Ditch
Concrete Path
Infiltration Basins
Catch Basins
REGULAR CB
CB W/CPS UNIT
CB W/WCS AR SCREEN
CB W/REM INLET FILTER
CB W/ARS SCR. & REM INLET
CB W/Grated Inlet
CB W/CPS & REM INLET
CB W/GRATED INLET & CPS
CB W/CPS & ARS CREEN
CB W/CPS &
RCFC Line
6"
Cast In Place
4 48
54 72
8/5/2026, 10:00:25 AM
0 0.05 0.1 0.2 mi
0 0.07 0.15 0.3 km
1:7,032
LEGEND
3A - CLEAN DOUBLE REINFORCED CONRETE
BOXES. REMOVE TRASH, DEBRIS, AND SEDIMENT
BUILDUP ALONG BOTTOM [(2) 8.5'WX5'H]. IT HAS
BEEN NOTED HAND CLEANING MAY BE REQUIRED
TO COMPLETE THIS WORK.
3B - MAINTAIN 25' TRAPEZOIDAL CHANNEL WHICH
INCLUDES 6' WIDE CONRETE CHANNEL BOTTOM.
TO INCLUDE WEED CONTROL ALONG SIDE
SLOPES, AND FLOW LINES. REMOVE TRASH,
DEBRIS, AND SEDIMENT BUILDUP ALONG
CHANNEL BOTTOM.
3C - CLEAN SD PIPE OVER 36". PROVIDE CCTV
FOOTAGE WITH 360° VIEWS OF PIPE JOINTS AND A
PIPE CONDITION RATING REPORT. 3A 3C
3B ID
3679
261
78 PAT
T
E
R
S
O
N
AV
E
PERRY ST
VAL VERDE ST
2 2 1
23491
4252
4150
4150
4332
23491
4252
4150
4332
4150
4 - Clean Abandoned SD Pipe Over 36"
ParcelQuest creates and markets real estate information databases, which data has been recorded, calculated, processed, formatted, and presented Parcels
Parcels Riverside County
Flood Control Boundaries- GF
Outfalls
Inlets
BOX-DI
CMP-DI
CMP-IR
CSP Inlet
Concrete
Drop Inlet
Grated Inlet
Inlet Box
Inlet Riser
Unknown
Transitions
Pumps
Conspan Units
Manholes
MH Station
Station
Unknown
Rip Rap
Hydrodynamic Separators
Channels
Earthen Channel
Concrete Channel
V Ditch
Concrete Path
Infiltration Basins
Catch Basins
REGULAR CB
CB W/CPS UNIT
CB W/WCS AR SCREEN
CB W/REM INLET FILTER
CB W/ARS SCR. & REM INLET
CB W/Grated Inlet
CB W/CPS & REM INLET
CB W/GRATED INLET & CPS
CB W/CPS & ARS CREEN
CB W/CPS &
RCFC Line
6"
Cast In Place
4 48
54 72
8/5/2026, 11:00:30 AM
0 0.02 0.04 0.07 mi
0 0.03 0.06 0.11 km
1:2,531
LEGEND
4A - CLEAN SD PIPE OVER 36". PROVIDE
CCTV FOOTAGE WITH 360° VIEWS OF PIPE
JOINTS AND A PIPE CONDITION RATING
REPORT.
4A
ID
343 79
CITY OF PERRIS
CITY COUNCIL
AGENDA SUBMITTAL
10.B
BACKGROUND/DISCUSSION:
MEETING DATE: October 13, 2026
SUBJECT: Consideration to award a Public Works Contract to Carter Enterprises Group, Inc. for the City-Wide Annual On-Call Sidewalk Repair and Maintenance Services Program in an amount not to exceed $250,000, plus a 10% contingency in the amount of $25,000, totaling $275,000, for a one-year contract term with up to two additional one-year extensions.
REQUESTED ACTION:
The City Council:
Award a Public Works Contract to Carter Enterprises Group, Inc. for the City-Wide Annual On-Call Sidewalk Repair and
Maintenance Services Program, for a total contract amount not to exceed $250,000, for a one-year term with up to two additional one-year extensions.
Authorize 10% of the contract amount for contingency in the amount of $25,000.00.
Authorize the City Manager to execute the Public Works Contract and all necessary documents, approved as to form by the City Attorney.
CONTACT: Bryant Hill, Director of Public Works
The Public Works Department released a Request for Proposals (RFP) for the Annual On-Call Sidewalk Repair and Maintenance Services Program to provide routine sidewalk maintenance, corrective repairs, ADA improvements, and miscellaneous concrete work throughout the city on an as-needed basis.
On September 9, 2026, the Project was advertised on PlanetBids, and bids were opened on September 25, 2026. A total of eight (8) bids were received, with unit pricing provided for 18 separate bid items.
During staff review, two bids were deemed nonresponsive due to bid bond deficiencies and excluded from further evaluation. The City Attorney’s Office determined that omitted DIR registration extracts were waivable defects, provided the required documentation was subsequently submitted. 80 BUDGET (or FISCAL) IMPACT:
Each bid item was evaluated individually among the remaining responsive and responsible bidders.
Consistent with the RFP, award is based on the bidder with the greatest number of lowest-priced bid items rather than the aggregate sum of all unit prices. The bid evaluation and ranking results are provided in Attachment 1.
Based on the evaluation, Carter Enterprises Group, Inc. was identified as the responsive and responsible bidder with the greatest number of lowest-priced bid items, submitting the lowest price on 10 of the 18 bid items.
Staff recommends that the City Council: 1) Award the Public Works Contract to Carter Enterprises Group, Inc. for the City-Wide Annual On-Call Sidewalk Repair and Maintenance Services Program, for a total contract amount not to exceed $250,000, for a one-year term with up to two (2) additional oneyear extensions; 2) Authorize 10% of the contract amount for contingency, in the amount of $25,000; and 3) Authorize the City Manager to execute the Public Works Contract and all necessary documents, approved as to form by the City Attorney.
There will be no impact on the general fund. Council approved funding in the current CIP budget (S122).
Prepared By: William Carrasco, Management Analyst
Attachments:
1. Bid Evaluation and Results.pdf
2. Carter Enterprises Inc. Proposal.pdf
3. Sample Public Works Contract.pdf
81 ATTACHMENT 1
BID EVALUATION AND RESULTS
82 Bidder Rank # of Lowest Line
Item Prices
Aggregate Line-Item Total
CARTER ENTERPRISES GROUP INC 1 10 $64,104.00
CJ Concrete Construction, Inc 2 7 + 1 tie $19,938.00
TVR Construction Engineering LLC 3 1 tie $20,577.00
We R Builders, Inc. 4 0 $28,050.00
Gentry General Engineering, Inc 5 0 $34,522.55
M. Brey, Inc dba MBE Construction 6 0 $34,755.15
Note: CJ Concrete Construction, Inc. and TVR Construction Engineering LLC submitted identical lowest pricing for one bid item.
Bid Evaluation
83 City of Perris
Submissions for Solicitation Annual On-Call Sidewalk Repair and Maintenance Services Program Issued on 09/09/2026
Submissions Due on September 25, 2026 2:00 PM (PDT)
Exported on 09/25/2026
Line Totals (Unit Price * Quantity)
Item
Num
Description Unit of
Measure
Quanti
ty
CJ Concrete
Construction, Inc
TVR Construction
Engineering LLC
We R Builders,
Inc.
Gentry General
Engineering, Inc
M. Brey, Inc dba MBE
Construction
Correa Construction
LLC
CT&T Concrete
Paving Inc.
CARTER
ENTERPRISES
GROUP INC
Lowest Bid
Amount
Lowest Bidder for Line Item
# of times Vendor
appears as Lowest
Bidder across all
line items
1 Mobilization (per task order or as required) L.S. 1 $1,000.00 $1,000.00 $3,500.00 $3,512.37 $1,580.54 $18,000.00 $1,000.00 CJ Concrete Construction, Inc CJ Concrete Construction, Inc 8 2 Traffic Control (including pedestrian control,
signage, and compliance with California MUTCD)
L.S. 1 $1,000.00 $1,500.00 $1,500.00 $2,871.87 $3,161.09 $25,000.00 $1,000.00 CJ Concrete Construction, Inc CARTER ENTERPRISES GROUP INC 10 3 Water Pollution Control (BMP implementation and
maintenance)
L.S. 1 $500.00 $1,000.00 $500.00 $2,999.41 $1,229.31 $100.00 $100.00 CARTER ENTERPRISES GROUP INC 0 4 Clearing, Grubbing, Sawcutting, Removal, and
Demolition of Existing Improvements
L.S. 1 $1,000.00 $1,000.00 $1,500.00 $1,936.59 $6,108.93 $100.00 $100.00 CARTER ENTERPRISES GROUP INC 5 Remove & Replace Concrete Sidewalk per County of
Riverside Standard No. 400
S.F. 1 $14.00 $25.00 $25.00 $17.31 $59.33 $19.00 $14.00 CJ Concrete Construction, Inc 6 Remove & Replace Curb & Gutter per County of
Riverside Standard No. 200
L.F. 1 $70.00 $150.00 $165.00 $101.05 $81.91 $175.00 $70.00 CJ Concrete Construction, Inc 7 Remove & Replace Residential Driveway Approach
with Sidewalk per County of Riverside Standard No.
213
S.F. 1 $16.00 $27.00 $30.00 $26.93 $68.36 $14.00
$14.00 CARTER ENTERPRISES GROUP INC
8 Remove Existing Curb Ramp and Replace with
Modified ADA-Compliant Curb Ramp per County of
Riverside Standard No. 403
E.A. 1 $6,800.00 $7,000.00 $8,500.00 $8,740.69 $7,764.74 $9,500.00 $6,800.00 CJ Concrete Construction, Inc
9 Remove & Replace Cross Gutter & Spandrel per
County of Riverside Standard No. 209
S.F. 1 $28.00 $35.00 $40.00 $41.86 $81.66 $20.00 $20.00 CARTER ENTERPRISES GROUP INC 10 Install Residential Driveway per County of Riverside Standard No. 213
S.F. 1 $16.00 $27.00 $35.00 $24.76 $57.45 $14.00 $14.00 CARTER ENTERPRISES GROUP INC 11 Remove Existing Curb Ramp and Replace with "Case
A" ADA-Compliant Curb Ramp per County of
Riverside Standard No. 403
E.A. 1 $6,800.00 $7,000.00 $9,000.00 $8,740.69 $7,764.74 $9,500.00 $6,800.00 CJ Concrete Construction, Inc
12 Remove & Replace Local Depression (6" thick
concrete) per County of Riverside Standard No. 300
S.F. 1 $18.00 $30.00 $35.00 $21.47 $68.36 $14.00
$14.00 CARTER ENTERPRISES GROUP INC
13 Sawcut, Remove & Replace Asphalt Concrete (A.C.)
Pavement (minimum thickness 0.25')
TON 1 $325.00 $450.00 $550.00 $634.04 $1,980.16 $600.00 $325.00 CJ Concrete Construction, Inc 14 Grinding or Removal of Concrete Trip Hazards
(sidewalk uplift/offset correction) S.F. 1 $60.00 $25.00 $30.00 $22.31 $31.49 $18.00 $18.00 CARTER ENTERPRISES GROUP INC 15 Installation of Detectable Warning Surfaces (ADA
truncated domes)
S.F. 1 $750.00 $75.00 $65.00 $87.13 $134.64 $40.00 $40.00 CARTER ENTERPRISES GROUP INC 16 Root-Related Sidewalk Repair (including root
removal, if required)
S.F. 1 $18.00 $200.00 $35.00 $22.60 $45.53 $25.00 $18.00 CJ Concrete Construction, Inc 17 Miscellaneous Concrete Repairs (small-scale or
incidental work as directed by City)
S.F. 1 $23.00 $33.00 $40.00 $21.47 $46.16 $15.00 $15.00 CARTER ENTERPRISES GROUP INC 18 Emergency / Urgent Response Work (as directed by
City)
L.S. 1 $1,500.00 $1,000.00 $2,500.00 $4,700.00 $4,490.75 $950.00 $950.00 CARTER ENTERPRISES GROUP INC Subtotal $19,938.00 $20,577.00 $28,050.00 $34,522.55 $34,755.15 $64,104.00 $19,938.00 Total $19,938.00 $20,577.00 $28,050.00 $34,522.55 $34,755.15 $64,104.00 $19,938.00 Note: Correa Construction LLC and CT&T Concrete Paving, Inc. were deemed nonresponsive due to bid bond deficiencies and excluded from the evaluation. 84 ATTACHMENT 2
CARTER ENTERPRISES INC. PROPOSAL
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ATTACHMENT 3
SAMPLE PUBLIC WORKS CONTRACT
177
01006.0001 2124308.1 4/28/2026
PUBLIC WORKS CONSTRUCTION CONTRACT
THIS PUBLIC WORKS CONSTRUCTION CONTRACT (“Contract”) is made and entered into as of the date executed by the City Manager, by and between _____________, a _____________ (“Contractor”) and the City of Perris, a California municipal corporation (“City”) for a total amount of $________, consisting of $_______ as set forth in Contractor’s bid (the "Contract Amount") and up to $_______ in a Construction Contingency amount if approved by the City pursuant to this Contract.
RECITALS
WHEREAS, City sought bids pursuant to the Perris Municipal Code for the Project (defined below); and
WHEREAS, City did accept the bid of Contractor dated ________ (“Contractor’s Bid”) subject to Section 2 below; and
WHEREAS, the City Council has authorized the City Manager to enter into a written contract with Contractor for furnishing labor, equipment, and material for the construction of:
JOB NO.: ________________________________________________ DESCRIPTION: ________________________________________________ LOCATION: ________________________________________________ (hereinafter referred to as the “Project”).
NOW, THEREFORE, in consideration of the mutual covenants herein contained, it is agreed:
1. GENERAL SCOPE OF WORK
a. Work. Contractor shall furnish all necessary labor, tools, materials, appliances, and equipment for and do the work for the Project (collectively, the “Work”). Said Work shall be performed in accordance with (i) all of the Contract Documents incorporated herein, (ii) the bid prices contained in the Contractor’s Bid, and (iii) the instructions of the City Manager or his/her designee (the “Project Manager”).
By executing this Contract, Contractor warrants that Contractor (i) has thoroughly investigated and considered the scope of Work to be performed, (ii) has carefully considered how the Work should be performed, and (iii) fully understands the facilities, difficulties and restrictions attending performance of the Work under this Contract. If the Work involve work upon any site, Contractor warrants that Contractor has or will investigate the site and is or will be fully acquainted with the conditions there existing, prior to commencement of the Work hereunder. b. Warranty. Contractor warrants all work under the Contract (which for purposes of this Section shall be deemed to include unauthorized work which has not been removed and any non-conforming materials incorporated into the work) to be of good quality and free from any defective or faulty material and workmanship.
SAMPLE
178
01006.0001 2124308.1 4/28/2026 2
Contractor agrees that for a period of one year (or the period of time specified elsewhere in the Contract or in any guarantee or warranty provided by any manufacturer or supplier of equipment or materials incorporated into the work, whichever is later) after the date of final acceptance, Contractor shall within ten (10) days after being notified in writing by the City of any defect in the work or non-conformance of the work to the Contract, commence and prosecute with due diligence all work necessary to fulfill the terms of the warranty at its sole cost and expense. Contractor shall act as soon as requested by the City in response to an emergency. In addition, Contractor shall, at its sole cost and expense, repair, remove and replace any portions of the work (or work of other contractors) damaged by its defective work or which becomes damaged in the course of repairing or replacing defective work. For any work so corrected, Contractor’s obligation hereunder to correct defective work shall be reinstated for an additional one year period, commencing with the date of acceptance of such corrected work.
Contractor shall perform such tests as the City may require to verify that any corrective actions, including, without limitation, redesign, repairs, and replacements comply with the requirements of the Contract. All costs associated with such corrective actions and testing, including the removal, replacement, and reinstitution of equipment and materials necessary to gain access, shall be the sole responsibility of the Contractor. All warranties and guarantees of subcontractors, suppliers and manufacturers with respect to any portion of the work, whether express or implied, are deemed to be obtained by Contractor for the benefit of the City, regardless of whether or not such warranties and guarantees have been transferred or assigned to the City by separate agreement and Contractor agrees to enforce such warranties and guarantees, if necessary, on behalf of the City. In the event that Contractor fails to perform its obligations under this Section, or under any other warranty or guaranty under this Contract, to the reasonable satisfaction of the City, the City shall have the right to correct and replace any defective or nonconforming work and any work damaged by such work or the replacement or correction thereof at Contractor’s sole expense. Contractor shall be obligated to fully reimburse the City for any expenses incurred hereunder upon demand. c. Final Acceptance. Acceptance of the Project shall only be by action of the City Manager or his or her designee. Neither the acceptance nor any prior inspections or failure to inspect shall constitute a waiver by City of any defects in the work. From and after acceptance, the Project shall be owned and operated by City. As a condition to acceptance, Contractor shall certify to City in writing that all of the work has been performed in strict conformity with the Contract and that all costs have been paid or supplied to City for security required herein, satisfactory to City, guaranteeing such performance.
2. CONTRACT DOCUMENTS INCORPORATED
This Contract includes and hereby incorporates in full each of the following documents, including all exhibits, drawings, plans and specifications, attachments and addenda thereto (collectively, the “Contract Documents”):
SAMPLE
179
01006.0001 2124308.1 4/28/2026 3
i. Notice Inviting Bids
ii. Instructions to Bidders
iii. Bid Forms
iv. Contractor's Bid (only portions that described the scope of work and Project cost)
v. General Provisions
vi. Special Provisions
vii. Technical Specifications
viii. Project Plans
ix. Performance and Payment Bonds
x. All change orders authorized after execution of this Contract.
This Contract is intended to require a complete and finished Project and anything necessary to complete the Work properly. Further, Contractor shall perform the Work in accordance with applicable law and lawful governmental regulations (including, but not limited to, all State and Federal laws, codes and regulations, and Municipal Ordinances and Regulations of City), whether set out specifically in this Contract or not. Should it be ascertained that any inconsistency exists between the Contract Documents and this Contract, the provisions of this Contract shall control, except as required and specified under law.
3. CONSTRUCTION START AND COMPLETION DATE
a. Start and Completion
The mandatory start construction date shall be the date stipulated in the Notice to Proceed issued by the Project Manager ("Start Date"). Contractor shall complete the Project within __________ (______) Calendar Days from the Start Date (“Completion Date"). City and Contractor acknowledge and agree that at the time of execution of this Contract it is impracticable and extremely difficult to fix the actual damages that will be incurred by City if Contractor fails to complete the Project by the Completion Date. Accordingly, City and Contractor agree that liquidated damages in the amount of One Thousand Dollars ($1,000.00) for each calendar day the Project remains incomplete beyond the Completion Date is a reasonable sum to assess as liquidated damages due to City by reason of the failure of Contractor to complete the Project. City may deduct the amount of liquidated damages from any payment due or that may become due to Contractor under this Contract. Progress payments made after the Completion Date shall not constitute a waiver of liquidated damages.
Contractor's Initials: _________
SAMPLE
180
01006.0001 2124308.1 4/28/2026 4
b. Force Majeure
The time period(s) specified in the Contract Documents for performance of the Work rendered pursuant to this Contract shall be extended because of any delays due to unforeseeable causes beyond the control and without the fault or negligence of the Contractor, including, but not restricted to, acts of God or of the public enemy, unusually severe weather, fires, earthquakes, floods, epidemics, quarantine restrictions, riots, strikes, freight embargoes, wars, litigation, and/or acts of any governmental agency, including the City, if the Contractor shall within ten (10) days of the commencement of such delay notify the Project Manager in writing of the causes of the delay. The Project Manager shall ascertain the facts and the extent of delay, and extend the time for performing the Work for the period of the enforced delay when and if in the judgment of the Project Manager such delay is justified. The Project Manager’s determination shall be final and conclusive upon the Parties to this Contract. In no event shall Contractor be entitled to recover damages against the City for any delay in the performance of this Contract, however caused, Contractor’s sole remedy being extension of the Contract pursuant to this Section.
4. INSURANCE AND BONDS
a. Insurance
The Contractor shall procure and maintain, at its sole cost and expense, in a form and content satisfactory to City, during the entire term of this Contract including any extension thereof, the following policies of insurance:
i. Commercial General Liability Insurance. Contractor shall maintain commercial general liability insurance with coverage at least as broad as Insurance Services Office form CG 00 01, in an amount not less than $2,000,000 per occurrence, $4,000,000 general aggregate, for bodily injury, personal injury, and property damage. The policy must include contractual liability that has not been amended. Any endorsement restricting standard ISO “insured contract” language will not be accepted. The Product and Completed Operations coverage under the policy shall extend a minimum of three (3) years after completion of the Project. 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.
The 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. The policy shall specifically provide for a duty to defend on the part of the insurer.
ii. Worker’s Compensation Insurance. A policy of worker’s compensation insurance in such amount as will fully comply with the laws of the State of California and which shall indemnify, insure and provide legal defense for both the Contractor and the City against any loss, claim or damage arising from any injuries or occupational diseases carrying out the work or service SAMPLE
181
01006.0001 2124308.1 4/28/2026 5
contemplated in this Contract. At a minimum, Contractor shall maintain Workers’ Compensation Insurance (Statutory Limits) and Employer’s Liability Insurance (with limits of at least $1,000,000). iii. Business Automobile Insurance. Contractor shall maintain automobile insurance at least as broad as Insurance Services Office form CA 00 01 covering bodily injury and property damage for all activities of the Contractor arising out of or in connection with Services to be performed under this Contract, including coverage for any owned, hired, non-owned or rented vehicles, in an amount not less than $1,000,000 combined single limit for each accident.
iv. Builder’s Risk Insurance. Contractor shall maintain Builder’s Risk (Course of Construction) insurance utilizing an “All Risk” (Special Perils) coverage form, with limits equal to the completed value of the Project and no coinsurance penalty provisions or provisional limit provisions. The 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) ordinance or law coverage for contingent rebuilding, demolition, and increased costs of construction; (5) transit coverage (unless insured by the supplier or receiving contractor), with sublimits sufficient to insure the full replacement value of any key equipment item; (6) ocean marine cargo coverage insuring any Project materials or supplies, if applicable; (7) coverage with sub-limits sufficient to insure the full replacement value of any property or equipment stored either on or off the Project site or any staging area.
v. Professional Liability Insurance (Errors & Omissions). Contractor shall maintain professional liability insurance that covers the services to be performed in connection with this Contract, in the minimum amount of $2,000,000 per claim and in the aggregate. Any policy inception date, continuity date, or retroactive date must be before the effective date of this Contract and Contractor agrees to maintain continuous coverage through a period no less than three (3) years after completion of the services required by this Contract.
vi. Pollution Liability Insurance. Contractor shall maintain Environmental Impairment Liability insurance, written on a Contractor’s Pollution Liability form or other form acceptable to City providing coverage for liability arising out of sudden, accidental, and gradual pollution and remediation. The policy limit shall be no less than $1,000,000 per claim and in the aggregate. All activities contemplated in this Contract shall be specifically scheduled on the policy as “covered operations.” The policy shall provide coverage for the hauling of waste from the Project site to the SAMPLE
182
01006.0001 2124308.1 4/28/2026 6
final disposal location, including non-owned disposal sites. vii. General Insurance Requirements.
(1) Primary/noncontributing; Waiver of Subrogation. All of the above policies of insurance shall be primary insurance. All insurance coverage maintained or procured pursuant to this Contract shall be endorsed to waive subrogation against City, its officers, employees and agents, and its insurers 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 City, and shall require similar written express waivers and insurance clauses from each of its subcontractors.
(2) Evidence of Insurance. No work or service under this Contract shall commence until the Contractor has provided the City with Certificates of Insurance or appropriate insurance binders evidencing the above insurance coverage and said Certificates of Insurance or binders are approved by the City. In the event any of the above policies of insurance are canceled, the Contractor shall, prior to the cancellation date, submit new evidence of insurance in conformance with this Section to the Project Manager or the Project Manager’s designee, as defined in the Contract Documents and incorporated herein.
(3) Not Limiting. Contractor agrees that the provisions of this Section 4(a) shall not be construed as limiting in any way the extent to which the Contractor may be held responsible for the payment of damages to any persons or property resulting from the Contractor’s activities or the activities of any person or person for which the Contractor is otherwise responsible.
(4) Subcontractors. In the event the Contractor subcontracts any portion of the Work pursuant to this Contract, the contract between the Contractor and such subcontractor shall require the subcontractor to maintain the same policies of insurance that the Contractor is required to maintain pursuant to this Section.
(5) Duration of Coverage. Contractor shall procure and maintain for the duration of this Contract insurance against claims for injuries to persons or damages to property, which may arise from or in connection with the performance of the Work hereunder by Contractor, its agents, representatives, employees or subcontractors. (6) City's Rights of Enforcement. In the event any policy of insurance required under this Contract does not comply with these SAMPLE
183
01006.0001 2124308.1 4/28/2026 7
specifications or is canceled and not replaced, City has the right but not the duty to obtain the insurance it deems necessary and any premium paid by City will be promptly reimbursed by Contractor or City will withhold amounts sufficient to pay premium from Contractor payments. In the alternative, City may cancel this Contract.
(7) Enforcement of Contract Provisions (non-estoppel). Contractor acknowledges and agrees that any actual or alleged failure on the part of the City to inform Contractor of non-compliance with any requirement imposes no additional obligations on the City nor does it waive any rights hereunder.
(8) Requirements Not Limiting. Requirements of specific coverage features or limits contained in this Section are not intended as a limitation on coverage, limits or other requirements, or a waiver of any coverage normally provided by any insurance. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue and is not intended by any party or insured to be all inclusive, or to the exclusion of other coverage, or a waiver of any type. If the Contractor maintains higher limits than the minimums shown above, the City requires and shall be entitled to coverage for the higher limits maintained by the Contractor. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City.
(9) Notice of Cancellation. Contractor agrees to oblige its insurance agent or broker and insurers to provide to City with a thirty (30) day notice of cancellation (except for nonpayment for which a ten (10) day notice is required) or nonrenewal of coverage for each required coverage.
(10) Additional Insured Status. General and auto liability policies shall provide or be endorsed to provide that City and its officers, officials, employees, and agents, and volunteers shall be additional insureds under such policies. This provision shall also apply to any excess/umbrella liability policies.
(11) Prohibition of Undisclosed Coverage Limitations. None of the coverages required herein will be in compliance with these requirements if they include any limiting endorsement of any kind that has not been first submitted to City and approved of in writing. (12) Separation of Insureds. A severability of interests provision must apply for all additional insureds ensuring that Contractor's insurance shall apply separately to each insured against whom claim is made SAMPLE
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01006.0001 2124308.1 4/28/2026 8
or suit is brought, except with respect to the insurer's limits of liability. The policy(ies) shall not contain any cross-liability exclusions.
(13) Pass Through Clause. Contractor agrees to ensure that its subconsultants, subcontractors, and any other party involved with the Project who is brought onto or involved in the project by Contractor, provide the same minimum insurance coverage and endorsements required of Contractor. Contractor agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this section. Contractor agrees that upon request, all agreements with consultants, subcontractors, and others engaged in the project will be submitted to City for review.
(14) Agency's Right to Revise Specifications. The City reserves the right at any time during the term of the Contract to change the amounts and types of insurance required by giving the Contractor ninety (90) days advance written notice of such change. If such change results in substantial additional cost to the Contractor, the City and Contractor may renegotiate Contractor's compensation.
(15) Self-Insured Retentions. Any self-insured retentions must be declared to and approved by City. City reserves the right to require that self-insured retentions be eliminated, lowered, or replaced by a deductible. Self-insurance will not be considered to comply with these specifications unless approved by City.
(16) Timely Notice of Claims. Contractor shall give City prompt and timely notice of claims made or suits instituted that arise out of or result from Contractor's performance under this Contract, and that involve or may involve coverage under any of the required liability policies.
(17) Additional Insurance. Contractor shall also procure and maintain, at its own cost and expense, any additional kinds of insurance, which in its own judgment may be necessary for its proper protection and prosecution of the work.
b. Performance and Payment Bonds
Concurrently with execution of this Contract, Contractor shall deliver to the City the following bonds:
i. Payment Bond. Concurrently with the execution of this Contract, Contractor shall deliver to City a Payment Bond in a sum not less than one hundred percent (100%) of the total Contract Amount which secures payments to persons furnishing labor, subcontractors, and suppliers in the SAMPLE
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event of default by Contractor. The payment bond shall be unconditional and remain in force during the entire term of the Contract and shall be null and void only if the Contractor completely and faithfully pays all persons furnishing labor, subcontractors, and suppliers that have been approved in writing to perform in whole or part the services required herein. ii. Performance Bond. Concurrently with execution of this Contract, Contractor shall deliver to City a Performance Bond in the sum of not less than one hundred percent (100%) of the total Contract Amount which secures the faithful performance of this Contract, unless such requirement is waived by the Project Manager or the Project Manager’s designee. The bond shall be unconditional and remain in force during the entire term of the Contract and shall be null and void only if the Contractor promptly and faithfully performs all terms and conditions of this Contract.
All bonds shall each contain the original notarized signature of an authorized officer of the surety and affixed thereto shall be a certified and current copy of his/her power of attorney. All bonds shall be unconditional and remain in force during the entire term of this Contract. All bonds shall be in substantially the form as provided in Exhibit “A”.
City shall release the Payment Bond and the Performance Bond when the following have occurred: (1) Contractor has made a written request for release and provided evidence of satisfaction of all other requirements under this Contract, (2) the work for the Project has been finally accepted by the City, and (3) after passage of the time within which lien claims are required to be made pursuant to applicable laws; if lien claims have been timely filed, City shall hold the Payment Bond until such claims have been resolved, Contractor has provided statutory bond, or otherwise as required by applicable law
c. Sufficiency of Insurer and Surety
Insurance and bonds required by this Contract shall be satisfactory only if issued by companies qualified to do business in California, rated "A" or higher in the most recent edition of Best's Rating Guide, The Key Rating Guide or in the Federal Register, and only if they are of a financial category Class VII or larger, unless otherwise approved by the City's Risk Manager due to unique circumstances. In addition, the insurance carrier must be currently authorized by the Insurance Commissioner to transact business of insurance or be on the List of Approved Surplus Line Insurers issued by the State of California. If the City determines that the work to be performed under this Contract creates an increased or decreased risk of loss to the City, the Contractor agrees that the minimum limits of the insurance policies and the bonds required this Contract may be changed accordingly upon receipt of written notice from the City.
5. COORDINATION OF WORK
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a. Representatives and Personnel of Contractor
The following principals of Contractor ("Principals") are hereby designated as being the principals and representatives of Contractor authorized to act on its behalf with respect to the work specified herein and make all decisions in connection therewith:
Name Title
Name Title
Name Title
The Principals shall be responsible during the term of this Contract for directing all activities of Contractor and devoting sufficient time to personally supervise the services hereunder. All personnel of Contractor, and any authorized agents, shall at all times be under the exclusive direction and control of the Principals. For purposes of this Contract, the Principals may not be replaced nor may their responsibilities be substantially reduced by Contractor without the express written approval of City. Additionally, Contractor shall make every reasonable effort to maintain the stability and continuity of Contractor's staff and subcontractors, if any, assigned to perform the services required under this Contract. Contractor shall notify City of any changes in Contractor's staff and subcontractors, if any, assigned to perform the services required under this Contract, prior to and during any such performance.
b. Status of Contractor
Contractor shall have no authority to bind City in any manner, or to incur any obligation, debt or liability of any kind on behalf of or against City, whether by contract or otherwise, unless such authority is expressly conferred under this Contract or is otherwise expressly conferred in writing by City. Contractor shall not at any time or in any manner represent that Contractor or any of Contractor's officers, employees, or agents are in any manner officials, officers, employees or agents of City. Neither Contractor, nor any of Contractor's officers, employees or agents, shall obtain any rights to retirement, health care or any other benefits which may otherwise accrue to City's employees. Contractor expressly waives any claim Contractor may have to any such rights.
c. City’s Project Manager
It shall be the Contractor's responsibility to assure that the Project Manager is kept informed of the progress of the performance of the services and the Contractor shall SAMPLE
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refer any decisions which must be made by City to the Project Manager. Unless otherwise specified herein, any approval of City required hereunder shall mean the approval of the Project Manager. The Project Manager shall have authority, if specified in writing by the City Manager, to sign all documents on behalf of the City required hereunder to carry out the terms of this Contract. d. Independent Contractor
Neither the City nor any of its employees shall have any control over the manner, mode or means by which Contractor, its agents or employees, perform the services required herein, except as otherwise set forth herein. City shall have no voice in the selection, discharge, supervision or control of Contractor's employees, servants, representatives or agents, or in fixing their number, compensation or hours of service. Contractor shall perform all services required herein as an independent contractor of City and shall remain at all times as to City a wholly independent contractor with only such obligations as are consistent with that role. City shall not in any way or for any purpose become or be deemed to be a partner of Contractor in its business or otherwise or a joint venturer or a member of any joint enterprise with Contractor.
6. PROHIBITION AGAINST SUBCONTRACTING OR ASSIGNMENT
The experience, knowledge, capability and reputation of Contractor, its principals and employees were a substantial inducement for the City to enter into this Contract. Therefore, Contractor shall not contract with any other entity to perform in whole or in part the services required hereunder without the express written approval of the City. All subcontractors shall obtain, at its or Contractor's expense, such licenses, permits, registrations and approvals (including from the City) as may be required by law for the performance of any services or work under this Contract. In addition, neither this Contract nor any interest herein may be transferred, assigned, conveyed, hypothecated or encumbered voluntarily or by operation of law, whether for the benefit of creditors or otherwise, without the prior written approval of City. Transfers restricted hereunder shall include the transfer to any person or group of persons acting in concert of more than twenty five percent (25%) of the present ownership and/or control of Contractor, taking all transfers into account on a cumulative basis. In the event of any such unapproved transfer, including any bankruptcy proceeding, this Contract shall be void. No approved transfer shall release the Contractor or any surety of Contractor of any liability hereunder without the express consent of City.
7. COMPLIANCE WITH LABOR AND WAGE LAWS
a. Prevailing Wages.
In accordance with the provisions of the California Labor Code, Division 2, Part 7, Chapter 1, Articles 1 and 2, Contractor and any subcontractor under Contractor is required to pay not less than the general prevailing rate of per diem wages to all workmen employed in the performance of this Contract, for work of a similar SAMPLE
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character in the locality in which the public work is performed, and not less than the general prevailing rate of per diem wages for holiday and overtime work. In that regard, pursuant to the California Labor Code, the Director of the Department of Industrial Relations of the State of California has determined such general prevailing rates of per diem wages. Copies of such prevailing rates of per diem wages are on file in the office of the City’s ____________ Department, located at ______________, and are available to any interested party upon request; or may be obtained online from the Department of Industrial Relations website at https://www.dir.ca.gov/Public-Works/Prevailing-Wage.html. Contractor shall cause a copy of such determinations to be posted at the job site.
Contractor and any subcontractor under Contractor is subject to forfeiture of penalties to City, as provided under the provision of Section 1775 of the California Labor Code for each worker employed, for each calendar day or portion thereof, if such worker is paid less than the general prevailing rate of wages hereinbefore stipulated for any work done under this Contract, by him or by any subcontractor under him, in violation of the provisions of the California Labor Code. Penalties shall be in addition to civil penalties, restitution of wages, liquidated damages to the employee, and any other applicable penalties imposed by the Labor Commissioner pursuant to the California Labor Code, or court of law.
By entering into this Contract, Contractor certifies that neither it nor any person or firm that has an interest in Contractor's firm is a person or firm that is barred from being awarded Public Works contracts by virtue of Section 1777.1 of the California Labor Code.
Contactor and any subcontractor under him shall submit, not less than monthly to the City and to the Labor Commissioner (or at a greater frequency as may be required by the Project Manager), certified copies of the payroll records for all workmen employed in the performance of this Contract for the preceding month's pay periods, and shall comply with all statutory requirements relating to certified copies of payroll records, including the maintenance of the records, their certification, and their availability for inspection as required by Labor Code Section 1776 and the Contract Documents. Contractor and any subcontractors must furnish electronic certified payroll records directly to the Labor Commissioner (aka Division of Labor Standards Enforcement) in a format prescribed by the Labor Commissioner not less than monthly.
b. Apprenticeship Employment.
In accordance with the provisions of Section 1777.5 of the California Labor Code as amended, and in accordance with the Regulations of the California Apprenticeship Council, properly indentured apprentices may be employed in the prosecution of the Work.
Attention is directed to the provisions in Sections 1777.5, 1777.6 and 1777.7 of the California Labor Code concerning the employment of apprentices by Contractor or SAMPLE
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any subcontractor under him.
Contractor and subcontractors under Contractor shall comply with all requirements of Sections 1777.5 and 1777.6 of the California Labor Code in the employment of apprentices.
c. Legal Hours of Work.
Eight (8) hours of labor shall constitute a legal day's work for all workers employed in the execution of this Contract, and Contractor, and any subcontractor under him, shall comply with and be governed by the laws of the State of California having to do with working hours set forth in Division 2, Part 7, Chapter 1, Article 3 of the Labor Code of the State of California as amended.
Contractor and any subcontractor under Contractor shall forfeit, as a penalty to City, twenty-five dollars ($25) for each worker employed in the execution of this Contract, by him or any subcontractor under him, upon any of the work hereinbefore mentioned, for each calendar day during which said worker is required or permitted to labor more than eight (8) hours in any one calendar day and 40 hours in any one calendar week in violation of the provisions of California Labor Code Section 1813, as amended.
d. Workers’ Compensation.
California Labor Code Sections 1860 and 3700 provide that every employer will be required to secure the payment of compensation to its employees if it has employees. In accordance with the provisions of California Labor Code Section 1861, Contractor certifies as follows:
“I am aware of the provisions of Section 3700 of the
Labor Code which require every employer to be
insured against liability for workers' compensation or
to undertake self-insurance in accordance with the
provisions of that code, and I will comply with such
provisions before commencing the performance of
the work of this contract.”
Contractor’s Authorized Initials ________
e. Public Works Contractor Registration.
Pursuant to California Labor Code Division 2, Part 7, Chapter 1, Article 2, a contractor or subcontractor shall not be qualified to engage in the performance of any contract for public work with City, as defined in said chapter, unless currently registered and qualified to perform public work pursuant to Section 1725.5 of the same. It is not a violation of this Section for an unregistered contractor to submit a bid that is authorized by Section 7029.1 of the Business and Professions Code or by Section 10164 or 20103.5 of the Public Contract Code, provided the contractor SAMPLE
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is registered to perform public work pursuant to Section 1725.5 at the time the contract is awarded.
This Contract is subject to compliance monitoring and enforcement by the Department of Industrial Relations.
Contractor shall cause job site notices to be posted as prescribed by regulation. f. Contractor’s Responsibility for Subcontractors.
For every subcontractor who will perform work under this Contract, Contractor shall be responsible for such subcontractor’s compliance with Division 2, Part 7, Chapter 1 (commencing with Section 1720) of the California Labor Code, and shall make such compliance a requirement in any contract with any subcontractor for work under this Contract. Contractor shall be required to take all actions necessary to enforce such contractual provisions and ensure subcontractor’s compliance, including without limitation, conducting a review of the certified payroll records of the subcontractor on a periodic basis or upon becoming aware of the failure of the subcontractor to pay his or her workers the specified prevailing rate of wages.
Contractor shall diligently take corrective action to halt or rectify any such failure by any subcontractor.
8. DISCOVERY OF UNKNOWN CONDITIONS
a. Pursuant to Public Contract Code Section 7104, Contractor shall promptly, and before the following conditions are disturbed, notify the City, in writing, of any: (i) material Contractor believes may be hazardous waste as defined in Section 25117 of the Health & Safety Code required to be removed to a Class I, II, or III disposal site in accordance with existing law; (ii) subsurface or latent physical conditions at the site, materially different from those indicated by information about the site made available to bidders prior to the deadline for submitting bids on the project; or (iii) unknown physical conditions at the site of any unusual nature, different from those ordinarily encountered and generally recognized as inherent in work of the character provided for in this Contract.
b. City shall promptly investigate the conditions, and if it finds that the conditions do 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 in accordance with this Contract. c. In the event that a dispute arises between City and Contractor whether the conditions materially differ, or involve hazardous waste, or cause a decrease or increase in Contractor’s cost of, or time required for, performance of any part of the work, Contractor shall not be excused from any scheduled completion date set, but shall proceed with all work to be 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 contracting parties.
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9. UNIDENTIFIED UTILITIES
To the extent required by Government Code Section 4215, City will compensate Contractor for the cost of locating, repairing damage not due to the failure of Contractor to exercise reasonable care, and removing or relocating utility facilities not identified by City in the Contract Documents with reasonable accuracy, and for equipment on the Project necessarily idled during such work. Nothing herein shall be deemed to require City to indicate the presence of existing service laterals or appurtenances whenever the presence of such utilities on the project site can be inferred from the presence of other visible facilities, such as buildings, meters, and junction boxes, on or adjacent to the site of the construction; provided, however, nothing herein shall relieve City from identifying main or trunklines in the plans and specifications. If Contractor, while performing the work, discovers utility facilities not identified by City in the plans or specifications, Contractor shall immediately notify City and the utility in writing. This Contract is subject to Government Code Sections 4126 through 4216.9. Contractor must notify utilities and obtain an identification number before excavation or be subject to liability for damages to subsurface installations.
10. TRENCH EXCAVATION
Pursuant to Labor Code Section 6705, if this Contract is for more than $25,000 and requires the excavation of any trench or trenches five feet or more in depth, Contractor shall submit, in advance of such excavation, a detailed plan showing the design of shoring, bracing, sloping, or other provisions to be made for worker protection from the hazard of caving ground during the excavation of such trench or trenches. The plan shall be reviewed and accepted by the City, or a registered civil or structural engineer employed by the City to whom authority has been delegated, prior to the excavation. If the plan varies from the shoring system standards, the plan shall be prepared by a registered civil or structural engineer. This Section shall not be deemed to allow the use of a shoring, sloping, or protective system less effective than that required by the Construction Safety Orders. This Section shall not be construed to impose tort liability on the City or any of its employees.
Full compensation for sheeting, shoring, bracing, sloping, and all other provisions required for worker protection shall be considered as included in the contract price shown in the appropriate Bid Item, and no additional compensation will be allowed therefor.
11. NON-DISCRIMINATION
No discrimination shall be made in the employment of persons upon public works because of the race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, marital status, or sex of such persons, except as provided in Section 12940 of the Government Code, and every Contractor and subcontractor under Contractor for public works violating this Section is subject to all of the penalties imposed for a violation of Chapter I of the Labor Code in accordance with the provisions and of Section 1735 of said Code.
12. LICENSES, PERMITS, FEES AND ASSESSMENTS
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Contractor shall obtain at its sole cost and expense such licenses, permits, registrations, and approvals as may be required by law for the performance of the services required by this Contract. Contractor shall have the sole obligation to pay for any fees, assessments and taxes, plus applicable penalties and interest, which may be imposed by law and arise from or are necessary for the Contractor’s performance of the services required by this Contract, and shall indemnify, defend and hold harmless City, its officers, employees or agents of City, against any such fees, assessments, taxes, penalties or interest levied, assessed or imposed against City hereunder.
13. CONTRACTOR'S LIABILITY; INDEMNIFICATION
a. Non-Liability of City.
City, its elected and appointed officials, officers, agents and employees, shall not be answerable or accountable in any manner for any loss or damage that may happen to the Work or any part thereof, or for any of the materials or other things used or employed in performing the Work, or for injury or damage to any person or persons, either worker, employees of Contractor or his subcontractors or the public, or for damage to adjoining or other property from any cause whatsoever arising out of or in connection with the performance of the Work. Contractor shall be responsible for any damage or injury to any person or property resulting from defects or obstructions or from any cause whatsoever, except the active negligence or willful misconduct of City, its employees, servants, or independent contractors who are directly responsible to City during the progress of the Work, or at any time before its completion and final acceptance.
b. Indemnification.
Contractor shall indemnify, defend with legal counsel approved by City, and hold harmless City, its officers, officials, employees and volunteers (each, an “Indemnitee”) from and against all liability, loss, damage, expense, cost (including without limitation reasonable legal counsel fees, expert fees and all other costs and fees of litigation) of every nature arising out of or in connection with Contractor's performance of work under this Contract or its failure to comply with any of its obligations contained in this Contract, except such loss or damage which is caused by the sole or active negligence or willful misconduct of the City. Should conflict of interest principles preclude a single legal counsel from representing both City and Contractor, or should City otherwise find Contractor’s legal counsel unacceptable, then Contractor shall reimburse the City its costs of defense, including without limitation reasonable legal counsels fees, expert fees and all other costs and fees of litigation. The Contractor shall promptly pay any final judgment rendered against the City (and its officers, officials, employees and volunteers) with respect to claims determined by a trier of fact to have been the result of the Contractor’s negligent, reckless or wrongful performance. It is expressly understood and agreed that the foregoing provisions are intended to be as broad and inclusive as is permitted by the law of the State of California and will survive termination of this Contract.
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Contractor obligations under this Section apply regardless of whether or not such claim, charge, damage, demand, action, proceeding, loss, stop notice, cost, expense, judgment, civil fine or penalty, or liability was caused in part or contributed to by an Indemnitee. However, without affecting the rights of City under any provision of this Contract, Contractor shall not be required to indemnify and hold harmless City for liability attributable to the active negligence of City, provided such active negligence is determined by agreement between the parties or by the findings of a court of competent jurisdiction. In instances where City is shown to have been actively negligent and where City’s active negligence accounts for only a percentage of the liability involved, the obligation of Contractor will be for that entire portion or percentage of liability not attributable to the active negligence of City.
14. SUBCONTRACTOR COMPLIANCE
Contractor shall be responsible for ensuring compliance by any subcontractor or lower tier subcontractor under it with this Contract, all State and Federal laws, codes and regulations, and Municipal Ordinances and Regulations of City.
15. THIRD PARTY CLAIM
Contractor shall notify City within 72 hours of the receipt of any third-party claim relating to this Contract.
16. CONTRACT PRICE AND PAYMENT
City shall pay Contractor for furnishing the material and doing the prescribed Work per the unit prices set forth in the Contractor's Bid. Contractor agrees to monthly progress payments as described in the Contract Documents.
No expenditure from the Construction Contingency ("Contingency") for any labor, equipment, materials, or any other article or service whatsoever, provided in relation to the Work shall be made without the prior written approval of City. Such expenditures and/or payments from the Contingency shall be made only pursuant to a Change Order signed by both parties. Verbal authorization to proceed with additional work shall not satisfy the requirement for a signed Change Order. No Change Orders combined shall exceed the Contract Amount plus the Contingency. The Contingency is for the sole and exclusive benefit and use of City for adjustments to the Contract Amount. The establishment of the Contingency is not to be construed as a promise, representation, or guarantee of the amount of compensable changes that may occur, which may be substantially more or less than the Contingency. Upon final completion and final payment, any portion of the Contingency that has not been expended by City for compensable changes expressly authorized by Change Order shall not be part of the total Contract Amount and shall not be payable or owed to Contractor.
a. Invoices.
Each month Contractor shall furnish to City an original invoice for all work SAMPLE
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performed and expenses incurred during the preceding month in a form approved by City’s Director of Finance. By submitting an invoice for payment under this Contract, Contractor is certifying compliance with all provisions of this Contract.
All invoices shall include a copy of Contractor’s Certified Payroll and proof that Certified Payroll has been submitted to the Department of Industrial Relations.
Contractor shall also submit a list of the prevailing wage rates (including federal prevailing wage rates, if applicable) for all employees and subcontractors providing services under this Contract, as applicable, with Contractor’s first invoice. If these rates change at any time during the term of this Contract, Contractor shall submit a new list of rates to the City with its first invoice following the effective date of the rate change.
Upon receipt and approval of an invoice by the City, City shall pay Contractor in a manner consistent with City’s normal procedures for handling accounts payable, but not to exceed thirty (30) days from date received by City, unless otherwise directed by the labor compliance officer. Progress payments shall be issued upon successful completion of items listed on the Bid Schedule of Values contained in the Contract Documents, and inspection made by the City, unless otherwise directed by the Project Manager, the Project Manager’s designee, or labor compliance officer. Payment to Contractor for work performed pursuant to this Contract shall not be deemed to waive any defects in work performed by Contractor.
b. Retention of Funds.
City will deduct a five percent (5%) retention from all progress payments in accordance with Public Contract Code Sections 22300 and 7201, which are hereby incorporated into this Contract. City shall permit the substitution of securities for any moneys withheld by City to ensure performance under this Contract. The retention held by the City shall be released within sixty (60) days after the date of completion of the work and the Project, as required by Public Contract Code 7107, which is hereby incorporated into this Contract. In the event of a dispute between City and Contractor, City may withhold from the final payment an amount not to exceed one hundred fifty percent (150%) of the disputed amount. The failure of City to exercise such right to deduct or to withhold shall not, however, affect the obligations of the Contractor to insure, indemnify, and protect City as elsewhere provided herein.
17. ADDITIONAL SERVICES
a. City shall have the right at any time during the performance of the Work, without invalidating this Contract, to order extra work beyond that specified in the General Scope of Work, set forth in Section 1 of this Contract, or make changes to the Work by altering, adding to or deducting from said Work. No such extra work may be undertaken unless a written change order is first given by the Project Manager or the Project Manager’s designee to the Contractor, incorporating therein any SAMPLE
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adjustment in (1) the Contract Amount, and/or (2) the time to perform this Contract, which said adjustments are subject to the written approval of the Contractor (“Change Order(s)”). Written Change Orders shall be made on forms prescribed by the Project Manager in accordance with the Contract Documents. Within ten (10) days after submission to the Project Manager of a Change Order that impacts the Contract Amount or the time for performance of the Work, the Contractor’s representative shall provide the City’s representative a written estimate of the effect of the proposed Change Order upon the Contract Amount and the actual cost of services that would be required for the change, which shall include a complete itemized cost breakdown of all labor and material showing actual quantities, hours, unit prices and wage rates and the effect upon time for performance of the work for such Change Order. All Change Orders must be signed by the Contractor and the Project Manager (or his or her designee) prior to commencing the extra work thereunder.
b. Any increase in compensation of up to ten percent (10%) of the Contract Amount or $25,000, whichever is less; or any increase in the time to perform of up to one hundred eighty (180) days may be approved by the Project Manager, provided that such increase does not materially affect the Work in a detrimental manner or materially and detrimentally affect the interest of the City. Any greater increases, taken either separately or cumulatively, must be approved by the City Council. c. Any adjustment in the Contract Amount for a Change Order must be in accordance with the rates set forth in the Contractor’s Bid and the Bid Schedule of Values. If the rates in the Contractor’s Bid do not cover the type of work or materials in the Change Order, the cost of such work or materials shall not exceed an amount agreed upon in writing and signed by Contractor and the Project Manager. Contractor is solely responsible for timely performance of the work as changed by written direction. If the cost of the Change Order cannot be agreed upon, the City will pay for actual work of the Change Order that is completed to the satisfaction of the City, as follows:
i. Labor: The cost of labor shall be the actual cost for the wages of workers and subcontractors performing the work for the Change Order at the time such work is performed. The use of labor classifications that would increase the cost of such work shall not be permitted.
ii. Materials and Equipment: The cost of materials and equipment shall be at cost to Contractor or the lowest current price for which such materials and equipment are reasonably available at the time the work is performed, whichever is lower.
iii. Daily Reporting: Contractor must provide a daily report that includes all invoices for labor, materials and equipment costs for the work under the Change Order. The daily report must include the following: (1) list of names of workers, classifications, and hours worked; (2) description and list of quantities of materials used; (3) type of equipment, size, identification SAMPLE
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number, and hours of operation, including loading and transportation, if applicable; (4) description of other City authorized services and expenditures in such detail as the City may require. Failure to submit a daily report by the close of the next working day may, at the City’s sole and absolute discretion, waive the Contractor’s rights to payment for the work performed for that day.
d. It is expressly understood by Contractor that the provisions of this Section shall not apply to services specifically set forth in the Scope of Work. Contractor hereby acknowledges that it accepts the risk that the services to be provided pursuant to the Scope of Work may be more costly or time consuming than Contractor anticipates and that Contractor shall not be entitled to additional compensation therefor. City may in its sole and absolute discretion have similar work done by other contractors. In no event shall Contractor be entitled to recover damages against the City for any delay in the performance of this Contract or the Work, while City seeks estimates from third party contractors to perform additional services.
e. No claim for an increase in the Contract Amount or time for performance shall be valid unless the procedures established in this Section are followed.
18. RIGHTS, TITLE, INTEREST
Pursuant to California Public Contract Code Section 7103.5(b), in entering into a public works contract or a subcontract to supply goods, services, or materials pursuant to a public works contract, the Contractor or subcontractor offers and agrees to assign to the awarding body all rights, title, and interest in and to all causes of action it may have under Section 4 of the Clayton Act (15 U.S.C. Sec. 15) or under the Cartwright Act (Chapter 2 (commencing with Section 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. This assignment shall be made and become effective at the time the awarding body tenders final payment to the contractor, without further acknowledgment by the parties.
19. DEFECTIVE WORK
City’s inspection of the Work and the Project shall not relieve Contractor of any obligations to fulfill this Contract and complete the Project in accordance with the Contract Documents. Defective work and materials shall be made good. Failure of City to identify a defect, or failure of an inspector to reject any portion of the Work, is not acceptance or a waiver of poor workmanship notwithstanding payments or release of any retention in whole or in part, and shall not be construed to waive any of City’s rights or remedies under this Contract.
20. TERMINATION
City may terminate this Contract in whole or in part for cause or convenience by giving ten (10) calendar days’ written notice to Contractor. Where Contractor’s services have been so SAMPLE
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terminated by City, said termination shall not affect any right or remedy of City against Contractor or the surety, then existing or accrued thereafter. a. Termination for Cause
It is City's right to terminate this Contract upon Contractor’s failure to comply with the provisions of this Contract, which includes, but not limited to, (1) Contractor’s refusal or failure to perform the Work required under this Contract with diligence to ensure substantial completion of the Project by the Completion Date.
Termination shall be effective if Contractor does not cure its failure to perform in a manner acceptable to City within ten (10) calendar days of notice of termination; (2) Contractor fails to comply with the provisions of this Contract; (3) Contractor violates any ordinance, regulation, State or Federal Law which applies to its performance under this Contract; (4) Contractor files bankruptcy or otherwise becomes insolvent; (5) Contractor makes a general assignment for the benefit of creditors; (6) a trustee or receiver is appointed for the Contractor or his property; (7) Contractor repeatedly fails to supply sufficient skilled workers or suitable materials or equipment; (8) Contractor has abandoned the Work or the Project, and/or; (9) Contractor disregards proper directives of the architect, inspector, or Project Manager under the Contract Documents. It will be at City's sole discretion to allow Contractor to remedy each cause for the termination without waiving City's right to terminate this Contract or restricting any other right or remedy under this Contract or law.
In the event that this Contract is terminated for cause, City may take over the Work and may exclude Contractor from the Project site. In exercising the right to complete the Project, City, at its sole discretion, may pursue such completion in a manner that is cost effective, timely, and beneficial to City, including but not limited to demanding that the Surety take over and complete the Work. City may demand that the Surety not utilize Contractor in said performance of completing the Work. Upon failure of the Surety to begin completion of the Work, within fifteen (15) calendar days after demand thereof, City may take over the Work and pursue its completion.
Contractor and the Surety shall be liable for damages sustained by City from the termination of this Contract under this clause, including, without limitation all cost necessary for repair and completion of the work.
City shall have the right to withhold monies otherwise payable to Contractor until the Project is complete. If City incurs additional costs, expenses, or other damages due to the failure of Contractor to perform the Work pursuant to this Contract, said expenditures shall be deducted from the amounts withheld. Should there be a balance of monies held after all expenses have been paid, the balance will be paid to Contractor upon completion of the Project.
b. Termination for Convenience
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City may terminate this Contract at any time for environmental considerations, its convenience, or when it is in the best interest of City.
Upon such termination, payment to Contractor shall be the actual cost of the Work completed, suitable storage and protection of materials and equipment delivered to the Project site, but not yet incorporated into the Work, and other costs actually incurred as permitted by this Contract and approved by City up to the effective date of termination. Ten percent (10%) of the actual cost of Work completed shall be allowed for overhead and profit providing that such payments do not exceed the total Contract Amount. The amount of any payments made to Contractor prior to the effective termination date shall be deducted from the actual costs of completed Work. Contractor shall not be entitled to any claim or lien against City for any additional compensation or damages in the event of termination of this Contract. c. Discontinuation of Work
Upon receipt of the termination notice, Contractor shall immediately discontinue the Work and placement of orders for materials, facilities and supplies in connection with the performance of this Contract, unless otherwise directed in the notice. Contractor shall promptly deliver to City all completed work, including plans, as-builts, forms, reports, and products. Any dispute regarding the amount owed to Contractor shall not diminish the right of City to receive and use such documents or materials.
21. DISPUTE RESOLUTION PROCESS
Section 20104 et seq. of the California Public Contract Code prescribes a process utilizing informal conferences, non-binding judicial-supervised mediation, and judicial arbitration to resolve disputes on construction claims of $375,000 or less. Section 9204 of the Public Contract Code prescribes a process for negotiation and mediation to resolve disputes on construction claims. The intent of this Section is to implement Sections 20104 et seq. and Section 9204 of the California Public Contract Code. This Section shall be construed to be consistent with said statutes.
For purposes of these procedures, “claim” means a separate demand by the Contractor, after the City has denied Contractor’s timely and duly made request for payment for extra work and/or a time extension, for (A) a time extension, (B) payment of money or damages arising from work done by or on behalf of the Contractor pursuant to the Contract and payment of which is not otherwise expressly provided for or the Contractor is not otherwise entitled to, or (C) an amount the payment of which is disputed by the City.
The following requirements apply to all claims to which this Section applies:
a. Claim Submittal. The claim shall be in writing and include the documents necessary to substantiate the claim. Claims governed by this procedure must be filed on or before the date of final payment. Nothing in this Section is intended to extend the time limit or supersede notice requirements otherwise provided in the Contract for the filing of claims, including all requirements pertaining to SAMPLE
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compensation or payment for extra work, disputed work, and/or changed conditions. Failure to follow such contractual requirements shall bar any claims or subsequent lawsuits for compensation or payment thereon. b. Supporting Documentation. The Contractor shall submit all claims in the following format:
i. Summary of the claim, including references to the specific Contract Document provisions upon which the claim is based.
ii. List of documents relating to claim: (a) Specifications, (b) Drawings, (c) Clarifications (Requests for Information), (d) Schedules, and (e) Other. iii. Chronology of events and correspondence related to the claim. iv. Statement of grounds for the claim.
v. Analysis of the claim's cost, if any.
vi. Analysis of the claim's time/schedule impact, if any. c. City's Response. Upon receipt of a claim pursuant to this Section, City shall conduct a reasonable review of the claim and, within a period not to exceed 45 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.
i. If the City needs approval from the City Council to provide the Contractor a written statement identifying the disputed portion and the undisputed portion of the claim, and the City Council does not meet within the 45 days or within the mutually agreed to extension of time following receipt of a claim sent by registered mail or certified mail, return receipt requested, the City shall have up to three days following the next duly publicly noticed meeting of the City Council after the 45-day period, or extension, expires to provide the Contractor a written statement identifying the disputed portion and the undisputed portion.
ii. Within 30 days of receipt of a claim, the City may request in writing additional documentation supporting the claim or relating to defenses or claims the City may have against the Contractor. If additional information is thereafter required, it shall be requested and provided pursuant to this subdivision, upon mutual Contract of City and the Contractor. iii. The City's written response to the claim, as further documented, shall be submitted to the Contractor within 30 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 SAMPLE
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additional information or requested documentation, whichever is greater. d. Meet and Confer. If the Contractor disputes the City's written response, or the City fails to respond within the time prescribed, the Contractor may so notify the City, in writing, either within 15 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 an informal conference to meet and confer for settlement of the issues in dispute.
Upon receipt of a demand, the City shall schedule a meet and confer conference within 30 days for settlement of the dispute.
e. Mediation. Within 10 business days following the conclusion of the meet and confer conference, if the claim or any portion of the claim remains in dispute, the City shall provide the Contractor a written statement identifying the portion of the claim that remains in dispute and the portion that is undisputed. Any payment due on an undisputed portion of the claim shall be processed and made within 60 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 City and Contractor shall mutually agree to a mediator within 10 business days after the disputed portion of the claim has been identified in writing, unless the parties agree to select a mediator at a later time.
i. If the parties cannot agree upon a mediator, each party shall select a mediator and those mediators shall select a qualified neutral third party to mediate with regard to the disputed portion of the claim. Each party shall bear the fees and costs charged by its respective mediator in connection with the selection of the neutral mediator.
ii. For purposes of this Section, mediation includes any nonbinding process, including, but not limited to, neutral evaluation or a dispute review board, in which an independent third party or board assists the parties in dispute resolution through negotiation or by issuance of an evaluation. Any mediation utilized shall conform to the timeframes in this Section. iii. Unless otherwise agreed to by the City and the contractor in writing, the mediation conducted pursuant to this Section shall excuse any further obligation under Public Contract Code Section 20104.4 to mediate after litigation has been commenced.
iv. All unresolved claims shall be considered jointly in a single mediation, unless a new unrelated claim arises after mediation is completed. f. City's Responses. The City's failure to respond to a claim from the Contractor within the time periods described in this Section or to otherwise meet the time requirements of this Section shall result in the claim being deemed rejected in its entirety. A claim that is denied by reason of the City's failure to have responded to a claim, or its failure to otherwise meet the time requirements of this Section, shall SAMPLE
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not constitute an adverse finding with regard to the merits of the claim or the responsibility of qualifications of the Contractor. City's failure to respond shall not waive City's rights to any subsequent procedures for the resolution of disputed claims.
g. Government Code Claims. If following the mediation, the claim or any portion remains in dispute, the Contractor must comply with the claim procedures set forth in Government Code Section 900 et seq. prior to filing any lawsuit against the City.
Such Government Code claims and any subsequent lawsuit based upon the Government Code claims shall be limited to those matters that remain unresolved after all procedures pertaining to extra work, disputed work, construction claims, and/or changed conditions, including any required mediation, have been followed by Contractor. If no such Government Code claim is submitted, or if the prerequisite contractual requirements are not satisfied, no action against the City may be filed. A Government Code claim must be filed no earlier than the date that Contractor completes all contractual prerequisites to filing a Government Code claim, including any required mediation. A Government Code claim shall be inclusive of all unresolved claims unless a new unrelated claim arises after the Government Code claim is submitted. For purposes of Government Code Section 900 et seq., the running of the period of time within which a claim must be filed shall be tolled from the time the Contractor submits his or her written claim to the City until the time the claim is denied, including any period of time utilized by the meet and confer conference or mediation that does not result in a complete resolutions of all claims.
h. Civil Actions for Claims of $375,000 or Less. The following procedures are established for all civil actions filed to resolve claims totaling $375,000 or less:
i. Within 60 days, but no earlier than 30 days, following the filing or responsive pleadings, the court shall submit the matter to non-binding mediation unless waived by mutual stipulation of both parties or unless mediation was held prior to commencement of the action in accordance with Public Contract Code Section 9204 and the procedures in this Section. The mediation process shall provide for the selection within 15 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 or by stipulation of both parties. If the parties fail to select a mediator within the 15-day period, either party may petition the court to appoint the mediator.
ii. If the matter remains in dispute, the case shall be submitted to judicial arbitration pursuant to Chapter 2.5 (commencing with Section 1141.10) of Title 3 of Part 3 of the Code of Civil Procedure, notwithstanding Section 1141.11 of that code. The Civil Discovery Act (Title 4 (commencing with Section 2016.010) of Part 4 of the Code of Civil Procedure) shall apply to any proceeding brought under this subdivision consistent with the rules SAMPLE
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pertaining to judicial arbitration.
iii. Upon stipulation of the parties, arbitrators appointed for these purposes shall be experienced in construction law, and, upon stipulation of the parties, mediators and arbitrators shall be paid necessary and reasonable hourly rates of pay not to exceed their customary rate, and such fees and expenses shall be paid equally by the parties, except in the case of arbitration where the arbitrator, for good cause, determines a different division.
iv. In addition to Chapter 2.5 (commencing with Section 1141.10) of Title 3 of Part 3 of the Code of Civil Procedure, any party who after receiving an arbitration award requests a trial de novo but does not obtain a more favorable judgment shall, in addition to payment of costs and fees under that chapter, pay the attorney's fees of the other party arising out of the trial de novo.
22. NOTICES
Any notice, demand, request, document, consent, approval, or communication either party desires or is required to give to the other party or any other person shall be in writing and either served personally or sent by prepaid, first-class mail, in the case of the City, to the City Manager and to the attention of the Project Manager (with her/his name and City title), City of Perris, 101 N. D Street, Perris, CA 92570 and in the case of the Contractor, to the person(s) at the address designated on the execution page of this Contract. Either party may change its address by notifying the other party of the change of address in writing. Notice shall be deemed communicated at the time personally delivered or in seventy-two (72) hours from the time of mailing if mailed as provided in this Section.
23. ATTORNEYS’ FEES
In the event that any action or proceeding is brought by either party to enforce any term or provision of this Contract, the prevailing party shall recover its reasonable attorney’s fees and costs incurred with respect thereto.
24. VENUE; CALIFORNIA LAW
Legal actions concerning any dispute, claim or matter arising out of or in relation to this Contract shall be instituted in the Superior Court of the County of Riverside, State of California, or any other appropriate court in such county, and Contractor agrees to submit to the personal jurisdiction of such court in the event of such action. This Contract shall be interpreted, construed and governed both as to validity and to performance of the parties in accordance with the laws of the State of California.
25. WAIVER
Waiver by any party to this Contract of any term, condition, or covenant of this Contract shall not constitute a waiver of any other term, condition, or covenant. Waiver by any party SAMPLE
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of any breach of the provisions of this Contract shall not constitute a waiver of any other provision or a waiver of any subsequent breach or violation of any provision of this Contract. Acceptance by City of any work or services by Contractor shall not constitute a waiver of any of the provisions of this Contract. No delay or omission in the exercise of any right or remedy by a non-defaulting party on any default shall impair such right or remedy or be construed as a waiver. Any waiver by either party of any default must be in writing and shall not be a waiver of any other default concerning the same or any other provision of this Contract.
26. RIGHTS AND REMEDIES ARE CUMULATIVE
Except with respect to rights and remedies expressly declared to be exclusive in this Contract, the rights and remedies of the parties are cumulative and the exercise by either party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other party.
27. UNFAIR BUSINESS PRACTICES CLAIMS
Pursuant to Public Contract Code Section 7103.5, in entering into this Contract, Contractor offers and agrees to assign to the City all rights, title, and interest in and to all causes of action it may have under Section 4 of the Clayton Act (15 U.S.C. § 15) or under the Cartwright Act (Chapter 2, (commencing with Section 16700) of Part 2 of Division 7 of the Business and Professions Code), arising from purchases of goods, services or materials related to this Contract. This assignment shall be made and become effective at the time the City tenders final payment to the Contractor without further acknowledgment by the Parties.
28. UNAUTHORIZED ALIENS
Contractor hereby promises and agrees to comply with all of the provisions of the Federal Immigration and Nationality Act, 8 U.S.C. § 1101 et seq., as amended, and in connection therewith, shall not employ unauthorized aliens as defined therein. Should Contractor so employ such unauthorized aliens for the performance of work and/or services covered by this Contract, and should any liability or sanctions be imposed against City for such use of unauthorized aliens, Contractor hereby agrees to and shall reimburse City for the cost of all such liabilities or sanctions imposed, together with any and all costs, including attorneys' fees, incurred by City.
29. ACCOUNTS, RECORDS, REPORTS, AND RELEASE OF INFORMATION a. Records.
Contractor shall maintain accounts and records, including personnel, property, and financial records, adequate to identify and account for all costs pertaining to this Contract and such other records as may be deemed necessary by the City to assure proper accounting for all project funds, both federal and non-federal shares. These records will be made available for audit purposes to the City or any authorized SAMPLE
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representative and will be retained for three (3) years after the expiration of this Contract, unless permission to destroy them is granted by the City. In the event of dissolution of Contractor’s business, custody of the books and records may be given to City, and access shall be provided by Contractor’s successor in interest.
Notwithstanding the above, the Contractor shall fully cooperate with the City in providing access to the books and records if a public records request is made and disclosure is required by law including but not limited to the California Public Records Act.
b. Ownership of Documents.
All drawings, specifications, maps, designs, photographs, studies, surveys, data, notes, computer files, reports, records, documents and other materials (the “documents and materials”) prepared by Contractor, its employees, subcontractors and agents in the performance of this Contract shall be the property of City and shall be delivered to City upon request of the Project Manager or upon the termination of this Contract, and Contractor shall have no claim for further employment or additional compensation as a result of the exercise by City of its full rights of ownership use, reuse, or assignment of the documents and materials hereunder. Any use, reuse or assignment of such completed documents for other projects and/or use of uncompleted documents without specific written authorization by the Contractor will be at the City’s sole risk and without liability to Contractor, and Contractor’s guarantee and warranties shall not extend to such use, reuse or assignment. Contractor may retain copies of such documents for its own use. Contractor shall have an unrestricted right to use the concepts embodied therein. All subcontractors shall provide for assignment to City of any documents or materials prepared by them, and in the event Contractor fails to secure such assignment, Contractor shall indemnify City for all damages resulting therefrom.
Moreover, Contractor with respect to any documents and materials that may qualify as “works made for hire” as defined in 17 U.S.C. § 101, such documents and materials are hereby deemed “works made for hire” for the City. c. Reports.
Contractor shall periodically prepare and submit to the Project Manager such reports concerning the performance of the services required by this Contract as the Project Manager shall require. Contractor hereby acknowledges that the City is greatly concerned about the cost of work and services to be performed pursuant to this Contract. For this reason, Contractor agrees that if Contractor becomes aware of any facts, circumstances, techniques, or events that may or will materially increase or decrease the cost of the work or services contemplated herein, Contractor shall promptly notify the Project Manager of said fact, circumstance, technique or event and the estimated increased or decreased cost related thereto. d. Confidentiality and Release of Information.
i. Information gained or work product produced by Contractor in performance SAMPLE
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of this Contract shall be considered confidential, unless such information is in the public domain or already known to Contractor. Contractor shall not release or disclose any such information or work product to persons or entities other than City without prior written authorization from the Project Manager.
ii. Contractor, its officers, employees, agents or subcontractors, shall not, without prior written authorization from the Project Manager or unless requested by the City Attorney, voluntarily provide documents, declarations, letters of support, testimony at depositions, response to interrogatories or other information concerning the work performed under this Contract. Response to a subpoena or court order shall not be considered "voluntary" provided Contractor gives City notice of such court order or subpoena.
iii. If Contractor, or any officer, employee, agent or subcontractor of Contractor, provides any information or work product in violation of this Contract, then City shall have the right to reimbursement and indemnity from Contractor for any damages, costs and fees, including attorneys' fees, caused by or incurred as a result of Contractor's conduct. iv. Contractor shall promptly notify City should Contractor, its officers, employees, agents or subcontractors be served with any summons, complaint, subpoena, notice of deposition, request for documents, interrogatories, request for admissions or other discovery request, court order or subpoena from any party regarding this Contract and the work performed there under. City retains the right, but has no obligation, to represent Contractor or be present at any deposition, hearing or similar proceeding. Contractor agrees to cooperate fully with City and to provide City with the opportunity to review any response to discovery requests provided by Contractor. However, this right to review any such response does not imply or mean the right by City to control, direct, or rewrite said response.
30. NON-LIABILITY OF CITY OFFICERS AND EMPLOYEES
No elected or appointed official, officer, agent or employee of the City shall be personally liable to the Contractor, or any successor in interest, in the event of any default or breach by the City or for any amount which may become due to the Contractor or to its successor, or for breach of any obligation of the terms of this Contract.
31. INTERPRETATION
The terms of this Contract shall be construed in accordance with the meaning of the language used and shall not be construed for or against either party by reason of the authorship of this Contract or any other rule of construction which might otherwise apply.
32. COUNTERPARTS
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This Contract may be executed in counterparts, each of which shall be deemed to be an original, and such counterparts shall constitute one and the same instrument, whether the signatures are originals, electronic, facsimiles or digital.
33. INTEGRATION; AMENDMENT
This Contract including the attachments hereto is the entire, complete and exclusive expression of the understanding of the parties. It is understood that there are no oral Contracts between the parties hereto affecting this Contract and this Contract supersedes and cancels any and all previous negotiations, arrangements, Contracts and understandings, if any, between the parties, and none shall be used to interpret this Contract. No amendment to or modification of this Contract shall be valid unless made in writing and approved by the Contractor and by the City Council. The parties agree that this requirement for written modifications cannot be waived and that any attempted waiver shall be void.
34. SEVERABILITY
In the event that any one or more of the phrases, sentences, clauses, paragraphs, or Sections contained in this Contract shall be declared invalid or unenforceable by a valid judgment or decree of a court of competent jurisdiction, such invalidity or unenforceability shall not affect any of the remaining phrases, sentences, clauses, paragraphs, or Sections of this Contract which are hereby declared as severable and shall be interpreted to carry out the intent of the parties hereunder unless the invalid provision is so material that its invalidity deprives either party of the basic benefit of their bargain or renders this Contract meaningless.
35. CONFLICT OF INTEREST
Contractor covenants that neither it, nor any officer or principal of its firm, has or shall acquire any interest, directly or indirectly, which would conflict in any manner with the interests of City or which would in any way hinder Contractor’s performance of work under this Contract. Contractor further covenants that in the performance of this Contract, no person having any such interest shall be employed by it as an officer, employee, agent or subcontractor without the express written consent of the Project Manager. Contractor agrees to at all times avoid conflicts of interest or the appearance of any conflicts of interest with the interests of City in the performance of this Contract.
No officer or employee of the City shall have any financial interest, direct or indirect, in this Contract nor shall any such officer or employee participate in any decision relating to the Contract which affects his or her financial interest or the financial interest of any corporation, partnership or association in which he or she is, directly or indirectly, interested, in violation of any State statute or regulation. The Contractor warrants that it has not paid or given and will not pay or give any third party any money or other consideration for obtaining this Contract.
36. WARRANTY & REPRESENTATION OF NON-COLLUSION
No elected or appointed official, officer, agent or employee of City has any financial SAMPLE
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interest, direct or indirect, in this Contract, nor shall any official, officer, or employee of City participate in any decision relating to this Contract which may affect his/her financial interest or the financial interest of any corporation, partnership, or association in which (s)he is directly or indirectly interested, or in violation of any corporation, partnership, or association in which (s)he is directly or indirectly interested, or in violation of any State or municipal statute or regulation. The determination of "financial interest" shall be consistent with State law and shall not include interests found to be "remote" or "noninterests" pursuant to Government Code Sections 1091 or 1091.5. Contractor warrants and represents that it has not paid or given, and will not pay or give, to any third party including, but not limited to, any City elected or appointed official, officer, or employee, any money, consideration, or other thing of value as a result or consequence of obtaining or being awarded any Contract. Contractor further warrants and represents that (s)he/it has not engaged in any act(s), omission(s), or other conduct or collusion that would result in the payment of any money, consideration, or other thing of value to any third party including, but not limited to, any City official, officer, or employee, as a result of consequence of obtaining or being awarded any Contract. Contractor is aware of and understands that any such act(s), omission(s) or other conduct resulting in such payment of money, consideration, or other thing of value will render this Contract void and of no force or effect.
37. AUTHORITY TO EXECUTE
The persons executing this Contract on behalf of the parties hereto warrant that (i) such party is duly organized and existing, (ii) they are duly authorized to execute and deliver this Contract on behalf of said party, (iii) by so executing this Contract, such party is formally bound to the provisions of this Contract, and (iv) the entering into this Contract does not violate any provision of any other Contract to which said party is bound. [SIGNATURES ON FOLLOWING PAGE]
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IN WITNESS WHEREOF, the parties hereto have caused this Contract to be duly executed with all the formalities required by law on the respective dates set forth opposite their signatures.
CITY OF PERRIS,
a California municipal corporation
BY: ATTEST:
Clara Miramontes, City Manager Nancy Salazar, City Clerk DATE:
APPROVED AS TO FORM:
ALESHIRE & WYNDER, LLP
Sunny K. Soltani, City Attorney
[SIGNATURES CONTINUE ON NEXT PAGE]
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CONTRACTOR
CONTRACTOR NAME: CONTRACTOR’S ADDRESS:
STATE OF CALIFORNIA
CONTRACTOR’S LICENSE NUMBER:
CONTRACTOR’S LICENSE
EXPIRATION DATE:
CONTRACTOR’S BUSINESS
TELEPHONE NUMBER:
EMERGENCY TELEPHONE NUMBER:
BY: BY:
NAME: NAME:
TITLE: TITLE:
DATE: DATE:
*Two corporate officer signatures required when Contractor is a corporation, with one signature required from each of the following groups: 1) Chairman of the Board, President or any Vice President; and 2) Secretary, any Assistant Secretary, Chief Financial Officer or any Assistant Treasurer. APPROPRIATE ATTESTATIONS SHALL BE INCLUDED
AS MAY BE REQUIRED BY THE BYLAWS, ARTICLES OF INCORPORATION, OR OTHER RULES OR REGULATIONS APPLICABLE TO CONTRACTOR’S BUSINESS ENTITY.
[END SIGNATURES]
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EXHIBIT “A”
BOND FORMS
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PERFORMANCE BOND
City Project Name: _________________
City Project No.: _____________
We, ___________, a California corporation, as Principal, and ____________, as Surety, jointly and severally, firmly bind ourselves, our heirs, representatives, successors and assigns, as set forth herein, to the City of Perris (“City”) for payment of the penal sum of ________ ($________). City and Principal have entered into an agreement, or are about to enter into the agreement attached hereto and incorporated by reference herein, for completion of public works for the property(ies) referenced in said agreement and with the City Project Name ___________ and City Project Number _________. Surety herein approves of the terms and conditions of said agreement and binds itself to faithfully perform the obligations of Principal therein if Principal fails to so perform.
Surety acknowledges that the agreement herein referenced shall be that document as executed by City and Principal.
THE CONDITION OF THIS OBLIGATION IS SUCH that if the Principal shall in all things stand to and abide by, and well and truly keep and perform all of the covenants, conditions, and provisions in said agreement, and any alteration thereof made as therein provided, on Principal's part to be kept and performed at the time and in the manner therein specified, and shall indemnify and save harmless the City, City’s engineer, and their consultants, and each of their officials, directors, officers, employees and agents, as therein stipulated, then this obligation shall become null and void; otherwise, it shall be and remain in full force and effect.
Surety agrees that should it fail to take over and diligently perform the agreement upon Principal's default after notice and within the time specified in the agreement, Surety will promptly on demand deposit with City such amount as City may reasonably estimate as the cost of completing all of Principal's obligations. Surety's obligation for payment herein shall exist, notwithstanding any controversy between Principal and City regarding Principal's failure under the agreement, and payment by Surety should be conclusively presumed between the parties herein to relieve, as demanded, Surety's obligations herein and shall be deemed proper payment as between Principal and Surety.
Surety agrees that no change, extension of time, alteration, or addition to the terms of the agreement, or the work to be performed thereunder or the plans and specifications, or any matters unknown to Surety which may affect Surety's risk shall in any wise affect its obligation on this bond, and it does thereby waive notice thereof.
Principal and Surety agree that if the City is required to engage the services of an attorney in connection with the enforcement of this bond, each shall pay City's reasonable attorneys' fees incurred, with or without suit, in addition to the above sum.
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Executed this day of _________, ____.
Seal of Corporation _____________
By:____________________________________
Authorized Representative of Principal
Title: _____________
(ATTACH ACKNOWLEDGEMENT OF AUTHORIZED REPRESENTATIVES)
Any claims under this bond may be addressed to: (check one) Surety's agent for service
of process in California: ( ) _____________________
[name of surety company]
_________________________ ____________________________________ Name Street Number
_________________________ ____________________________________ Street Number City and State
_________________________ ____________________________________ City and State Telephone Number
_________________________
Telephone Number
By:____________________________________
Attorney in Fact or other
Representative
(ATTACH ACKNOWLEDGEMENT OF AUTHORIZED REPRESENTATIVE)
Furnish the name, address and phone number of the company agent as well as the surety company.
Sureties must be authorized to do business in and have an agent for service of process in California and be on the accredited list of the United States Treasury Department (their bonds will be limited to such amounts as would be acceptable to the Treasury Department), and otherwise meet the requirements of the agreement.
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PAYMENT BOND
City Project Name: _________________
City Project No.: _____________
We, ___________, a California corporation, as Principal, and ____________, as Surety, jointly and severally, firmly bind ourselves, our heirs, representatives, successors and assigns, as set forth herein, to the City of Perris (“City”) and those for whose benefit this bond insures in the sum of ____________ ($____________). City and Principal have entered into an agreement, or are about to enter into the agreement attached hereto and incorporated by reference herein, for completion of public works for the property(ies) referenced in said agreement and with the City Project Name ___________ and City Project Number _________. Surety herein approves of the terms and conditions of said agreement and binds itself to faithfully perform the obligations of Principal therein if Principal fails to so perform. Surety acknowledges that the agreement herein referenced shall be that document as executed by City and Principal. If Principal or any of Principal's contractors or subcontractors, fails to pay any of the persons named in Section 9000 et seq. of the California Civil Code employed in the performance of the agreement for materials furnished or for labor thereon of any kind, or for amounts due under the Unemployment Insurance Code with respect to such work or labor, then Surety shall pay the same in an amount not exceeding the sum specified above, and also shall pay, in case suit is brought upon this bond, such reasonable attorneys' fees as shall be fixed by the court.
Surety agrees that it shall pay the amounts due the persons above named and diligently perform the agreement upon Principal's default after notice and within the time specified in the agreement.
If Surety fails to perform within the times specified in the agreement, Surety shall promptly on demand deposit with City such amount as City may reasonably estimate as the cost of completing all of Principal's obligations. Surety's obligation for payment herein shall extend, notwithstanding any controversy between Principal and City regarding Principal's failure under the agreement.
Principal and Surety agree that any payment by Surety pursuant to this paragraph should be conclusively presumed between the parties herein to relieve, as demanded, Surety's obligation herein and shall be deemed proper payment as between Principal and Surety.
This bond shall insure to the benefit of any and all of the persons named in Section 9000 et seq. of the California Civil Code so as to give a right of action to them or their assigns in any suit brought upon this bond.
Surety agrees that no change, extension of time, alteration, or addition to the terms of the agreement, or the work to be performed thereunder, or the plans and specifications, or any matters unknown to Surety which might affect Surety's risk, shall in any way affect its obligation on this bond, and it does hereby waive notice thereof.
Principal and Surety agree that should City become a party to any action on this bond, that each will also pay City's reasonable attorneys' fees incurred therein in addition to the above sums.
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Executed this _____________ day of ___________, ______.
Seal of Corporation ______________
By:______________________________
Authorized Representative of Principal
Title: __________
(ATTACH ACKNOWLEDGEMENT OF AUTHORIZED REPRESENTATIVES)
Any claims under this bond may be addressed to: (check one) Surety's agent for service
of process in California: ( ) ________________
[name of surety]
_________________________ _____________________________ Name Street Number
_________________________ _____________________________ Street Number City and State
_________________________ _____________________________ City and State Telephone Number
_________________________
Telephone Number
By:_____________________________
Attorney in Fact or other
Representative
(ATTACH ACKNOWLEDGEMENT OF AUTHORIZED REPRESENTATIVE)
Furnish the name, address and phone number of the company agent as well as the surety company.
Sureties must be authorized to do business in and have an agent for service of process in California and be on the accredited list of the United States Treasury Department (their bonds will be limited to such amounts as would be acceptable to the Treasury Department), and otherwise meet the requirements of the agreement.
SAMPLE
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CITY OF PERRIS
CITY COUNCIL
AGENDA SUBMITTAL
10.C
BACKGROUND/DISCUSSION:
MEETING DATE: October 13, 2026
SUBJECT: Consideration to execute a Second Amendment extending the existing agreement with Willdan Financial Services for an additional one-year term for Annual Administration and Annexation Services of the Landscape and Lighting Act of 1972 District in an amount not to exceed $58,500.00.
REQUESTED ACTION: City Council to approve the Second Amendment, extending the existing agreement with Willdan Financial Services for an additional one-year term at the annual cost not to exceed $58,500 for annual Administration and Annexation Services of the Landscape and Lighting Act of 1972 District for the City of Perris and authorize the City Manager to execute the amendment and all necessary documents, approved as to form by the City Attorney.
CONTACT: Bryant Hill, Director of Public Works
On February 11, 2022, the City Council approved a Professional Services Agreement with Willdan Financial Services for annual administration and annexation services associated with the City of Perris Landscape and Lighting Act of 1972 District. Services provided under the agreement include, but are not limited to, preparation of the Engineer’s Report, determination of assessment amounts based on parcel information, and maintenance of the tax roll database.
The agreement was initially approved for a two-year term, with the option to extend for up to three additional one-year terms. On July 29, 2025, the City Council approved Amendment No. 1, which ratified the three one-year extensions and extended the agreement through October 30, 2026.
Willdan Financial Services has extensive experience providing these specialized services to the City and has consistently provided high-quality service. Staff believes it is in the City’s best interest to extend the agreement with Willdan Financial Services due to the firm’s familiarity with the required services and its experience with the City’s specific requirements.
Staff recommends that the City Council approve Amendment No. 2 to the Professional Services 216
BUDGET (or FISCAL) IMPACT:
Agreement with Willdan Financial Services to extend the term through October 30, 2027, and authorize the City Manager to execute the amendment and all necessary documents, approved as to form by the City Attorney.
There will be no budgetary impact on the general fund, as the service cost has been approved by Council in the 2026-2027 FY Special Districts budget.
Prepared By: William Carrasco, Management Analyst
Attachments:
1. Draft Amendment No. 2.pdf
2. Amendment No. 1.pdf
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ATTACHMENT 1
DRAFT AMENDMENT NO. 2
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01006.0007 2196095.1
AMENDMENT NO. 2
TO THE CONTRACT SERVICES AGREEMENT FOR PROFESSIONAL SERVICES
BY AND BETWEEN THE CITY OF PERRIS AND WILLDAN FINANCIAL SERVICES This AMENDMENT NO. 2 to the CONTRACT SERVICES AGREEMENT FOR PROFESSIONAL SERVICES (“Amendment No. 2”) is hereby made and entered into effective as of ___________, 2026 (“Effective Date”) by and between the CITY OF PERRIS, a California municipal corporation (“City”) and WILLDAN FINANCIAL SERVICES, a California corporation (“Consultant”). City and Consultant may be referred to individually as “Party” or collectively as “Parties.”
RECITALS
A. City and Consultant entered into that certain Contract Services Agreement for Professional Services dated November 1, 2019 (“Agreement”), for Consultant to provide specified services to the City related to the administration of the Landscape and Lighting Acts of 1972 Assessment Engineering Districts including Flood Control Maintenance District No. 1; Maintenance District No. 84-1; and Landscape Maintenance District No. 1.
B. The Agreement provided for a not-to-exceed Contract Sum of $111,000.00 for the initial two-year term, with annual compensation of $55,500.00 for Fiscal Year 2020/2021 and Fiscal Year 2021/2022.
C. The Agreement, in Exhibit “B” (Schedule of Compensation), allowed for three oneyear options to renew following the initial two-year term, at the same fee, with no CPI inflator.
City and Consultant continued performance under the Agreement following the initial two-year term as though the three one-year options to extend were exercised, although the Parties did not enter into any formal written amendment to the Agreement exercising those options. Consultant has continued to perform the services set forth in the Agreement Scope of Services (Exhibit “A”), and City has continued to compensate Consultant in the annual amount of $55,500.00, for Fiscal Years 2022/2023, 2023/2024, and 2024/2025.
D. City and Consultant entered into Amendment No. 1 to the Agreement on October 30, 2021, to amend certain provisions of the scope of the Agreement, extend the term of the Agreement through October 30, 2026, and increase the annual compensation for Fiscal Year 2025/2026 to $58,500.00.
E. City and Consultant now desire to amend the Agreement to extend the term of the Agreement through October 30, 2027, and update the scope of services and schedule of compensation in the annual amount of $58,500.00 for Fiscal Year 2026/2027 as provided herein.
TERMS
1. Recitals. The foregoing recitals are true and correct, and are incorporated herein by this reference.
2. Contract Amendments. The Agreement is amended as provided herein (added text is indicated in bold italics, deleted text in strikethrough font):
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2.1 Section 2.1 (Contract Sum) is amended to read in its entirety as follows:
“2.1 Contract Sum. For the services rendered pursuant to this Agreement, Consultant shall be compensated in accordance with the Schedule of Compensation attached hereto as Exhibit “B” and incorporated herein by this reference, but not exceeding the maximum contract amount of Three Hundred Thirty-Six Ninety-Four Thousand Five Hundred Dollars ($394,500.00 336,000.00) (“Contract Sum”), comprising $55,500.00 annually for Fiscal Year 2020/2021, Fiscal Year 2021/2022, Fiscal Year 2022/2023, Fiscal Year 2023/2024, and Fiscal Year 2024/2025, and $58,500 for Fiscal Year 2025/2026 and Fiscal Year 2026/2027. The Consultant will be reimbursed for reasonable out-of-pocket expenses outlined under Exhibit “B”. The Consultant shall bill for any additional services requested in writing by the City in accordance with the hourly rates provided in Exhibit “B”.
2.2 Section 5.1 (Term) is amended to read in its entirety as follows:
“5.1 Term. Unless earlier terminated in accordance with Section 5.2 below, this Agreement shall continue in full force and effect until October 30, 20267.”
2.3 Exhibit “A” of this Amendment No. 2 (attached hereto and incorporated herein by this reference) is hereby added as a supplement to Exhibit “A” of the Agreement, pertaining to the scope of services to be performed from November 1, 2026 to October 30, 2027.
2.4 Exhibit “B” (Schedule of Compensation) of the Agreement is hereby amended as follows:
a. The first paragraph is amended to read in its entirety as follows:
“Willdan Financial Services (“Willdan”) proposes to provide Assessment Engineering Services to the City of Perris as identified within the Work Plan, for a fixed fee of $55,500 annually for the first five (5) years of the Agreement term, and $58,500 for the next two (2) years of the Agreement term. ”
b. The table under the heading “Annual Administration – Landscape and Lighting Act of 1972” is amended to include Fiscal Year 2026-27 in the table, with the same itemized fees of $19,500 per Maintenance District and a subtotal of $58,500, as shown in the table for Fiscal Year 2026-27.
2.5 Exhibit “B” of this Amendment No. 2 is hereby added as a supplement to Exhibit “B” of the Agreement, pertaining to the compensation for the services to be performed from November 1, 2026 to October 30, 2027.
3. Continuing Effect of Agreement. Except as amended by Amendment No. 2, all provisions of the Agreement, as amended by Amendment No. 1, remain unchanged and in full 220
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force and effect. From and after the date of this Amendment No. 2, whenever the term “Agreement” appears in the Agreement, it shall mean the Agreement, as amended by Amendment No. 1 and this Amendment No. 2.
4. Affirmation of Agreement; Warranty Re Absence of Defaults. City and Consultant each ratify and reaffirm each and every one of the respective rights and obligations arising under the Agreement. Each party represents and warrants to the other that there have been no written or oral modifications to the Agreement other than as provided herein. Each party represents and warrants to the other that the Agreement is currently an effective, valid, and binding obligation.
Consultant represents and warrants to City that, as of the date of this Amendment No. 2, City is not in default of any material term of the Agreement and that there have been no events that, with the passing of time or the giving of notice, or both, would constitute a material default under the Agreement.
5. Adequate Consideration. The parties hereto irrevocably stipulate and agree that they have each received adequate and independent consideration for the performance of the obligations they have undertaken pursuant to this Amendment No. 2.
6. Authority. The persons executing this Amendment No. 2 on behalf of the parties hereto warrant that (i) such party is duly organized and existing, (ii) they are duly authorized to execute and deliver this Amendment No. 2 on behalf of said party, (iii) by so executing this Amendment No. 2, such party is formally bound to the provisions of the Agreement, as amended and (iv) the entering into this Amendment No. 2 does not violate any provision of any other agreement to which said party is bound.
7. Counterparts. This Amendment No. 2 may be executed in any number of counterparts and each of such counterparts shall for all purposes be deemed to be an original. All such counterparts shall together constitute but one and the same Amendment No. 2. [SIGNATURES ON FOLLOWING PAGE]
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IN WITNESS WHEREOF, the parties hereto have executed this Amendment No. 2 on the date and year first-above written.
CITY:
CITY OF PERRIS, a California municipal
corporation
_____________________________________
Clara Miramontes
City Manager
ATTEST:
_____________________________________
Nancy A. Salazar, City Clerk
APPROVED AS TO FORM:
ALESHIRE & WYNDER, LLP
_____________________________________
Sunny Soltani, City Attorney
[pks; rjl]
CONSULTANT:
Willdan Financial Services, a California
corporation
By: _________________________________
Name:
Title: ________________________
By: _________________________________
Name: ________________________
Title: ________________________
Address: 27368 Via Industria,
Suite 200
Temecula, CA 92590
Two corporate officer signatures required when Consultant is a corporation, with one signature required from each of the following groups: 1) Chairman of the Board, President or any Vice President; and 2) Secretary, any Assistant Secretary, Chief Financial Officer or any Assistant Treasurer. APPROPRIATE ATTESTATIONS
SHALL BE INCLUDED AS MAY BE REQUIRED BY THE BYLAWS, ARTICLES OF INCORPORATION, OR OTHER RULES OR REGULATIONS APPLICABLE TO CONSULTANT’S BUSINESS ENTITY. [END SIGNATURES]
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EXHIBIT “A”
SUPPLEMENT TO AGREEMENT SCOPE OF SERVICES PERTAINING TO SERVICES TO BE PERFORMED FROM NOVEMBER 1, 2026 TO OCTOBER 30, 2027 223
01006.0007 2196095.1
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01006.0007 2196095.1
EXHIBIT “B”
SUPPLEMENT TO AGREEMENT SCHEDULE OF COMPENSATION PERTAINING TO COMPENSATION FOR SERVICES FROM NOVEMBER 1, 2026 TO OCTOBER 30, 2027
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ATTACHMENT 2
AMENDMENT NO. 1
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CITY OF PERRIS
CITY COUNCIL
AGENDA SUBMITTAL
10.D
BACKGROUND/DISCUSSION:
BUDGET (or FISCAL) IMPACT:
MEETING DATE: October 13, 2026
SUBJECT: Consideration to approve the City's monthly Check Register for September 2026.
REQUESTED ACTION: Approve the City’s Monthly Check Register for September 2026 CONTACT: Matthew Schenk, Director of Finance
The check register for the month of September 2026 is presented for City Council approval.
None
Prepared By: Matthew Schenk, Director of Finance
Attachments:
1. Check Register.pdf
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CITY OF PERRIS
CITY COUNCIL
AGENDA SUBMITTAL
10.E
BACKGROUND/DISCUSSION:
MEETING DATE: October 13, 2026
SUBJECT: Consideration to award a Professional Services Agreement to Pacific Code Compliance LLC (PCC) for project management services for the new fire station located at 2495 Murrieta Road, in an amount not to exceed $260,000.00 for a term ending on December 31, 2027.
REQUESTED ACTION: That the City Council:
1. Approve a Professional Services Agreement with Pacific Code Compliance LLC for project management services for the new Fire Station located at 2495 Murrieta Road, in an amount not to exceed $260,000, for a term ending on December 31, 2027; and
2. Authorize the City Manager to execute the agreement, subject to approval as to form by the City Attorney
CONTACT: Ernie Reyna, Assistant City Manager
The City is preparing to construct a new fire station at 2495 Murrieta Road in south Perris. On August 25, 2026, the City Council awarded the construction contract to Perera Construction & Design. The construction schedule is estimated at 281 working days, excluding weekends and holidays.
A project of this size requires dedicated daily oversight on the City’s behalf. The project manager will help ensure that construction follows the approved plans, remains on schedule and within budget, and that contractor-requested changes are reviewed before the City issues payment.
Because the project is subject to federal Davis-Bacon prevailing wage requirements, the City must verify that all workers, including subcontractor employees, receive the required wages.
Effective monitoring of construction activities and wage compliance will help protect the City from potential funding losses and penalties.
Pacific Code Compliance LLC (PCC), located in Redlands, submitted a proposal to provide these services. PCC staff have worked with the City of Perris before as a project manager and in reviewing prevailing wage records, so they are familiar with the City’s processes. 251
CONTRACT AWARD PROCEDURES AND BEST INTEREST ANALYSIS:
Perris Municipal Code Section 3.32.230(3)(e) stipulates that for professional services contracts; the Purchasing Officer or their designee may determine that it is in the best interest of the City to engage a specific consultant. In such cases, the contract terms, scope of work, and compensation may be established through direct negotiations. A formal recommendation must then be submitted by the Purchasing Officer or designee to the City Council, and the contract award is subject to City Council approval by a majority vote.
Staff has determined that it is in the City’s best interest to engage Pacific Code Compliance for project management oversight services. PCC is uniquely positioned to support the City because of its technical expertise, familiarity with the City’s public safety infrastructure, and established history of providing said services to the City.
Under the agreement, PCC will:
Manage the project on a daily basis, attend construction meetings, and prepare daily reports; Review the contractor’s product submittals, questions (requests for information), change orders, and time extension requests, working with the project architect; Review the contractor’s monthly payment requests before they are paid by the City; Coordinate with City staff, inspectors, Riverside County Flood Control, Southern California Edison, Eastern Municipal Water District, and the Gas Company; Monitor prevailing wage compliance by reviewing certified payroll each month and interviewing contractor and subcontractor employees on site; and
Lead the final inspection with the architect, prepare the punch list of remaining items, and collect lien releases and closeout paperwork when construction is complete.
PCC will bill the City only for the hours actually worked, at a rate of $140 per hour, plus mileage for project-related travel at the rate set by the State. PCC estimates 5 to 6 hours per day during the first few weeks of construction, then an average of about 30 hours per week for the rest of the project, plus 3 to 4 hours per week for prevailing wage monitoring. Based on these estimates, the total cost will not exceed $260,000.
The agreement runs through December 30, 2027. Consistent with the City’s standard agreement, the City Manager may approve additional work of up to 10 percent of the contract amount or $40,000, whichever is less (up to $26,000 for this agreement). Any increase above that amount would come back to the City Council for approval. The City may also end the agreement at any time with 30 days’ written notice.
RECOMMENDATION
Staff recommends that the City Council approve the agreement with Pacific Code Compliance LLC in an amount not to exceed $260,000 so that the fire station project has daily oversight and prevailing 252
BUDGET (or FISCAL) IMPACT:
wage monitoring in place from the start of construction.
The total cost of the agreement will not exceed $260,000. Funding will come from the General Fund and programmed accordingly. Because PCC bills only for actual hours worked, the final cost will be lower if less time is needed.
Prepared By: Ernie Reyna, Assistant City Manager
Attachments:
1. PSA - PCC.docx
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ATTACHMENT 1
PROFESSIONAL SERVICE AGREEMENT
BETWEEN CITY OF PERRIS AND PACIFIC
CODE COMPLIANCE
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AGREEMENT FOR PROFESSIONAL SERVICES
BETWEEN CITY OF PERRIS AND
PACIFIC CODE COMPLIANCE LLC
THIS AGREEMENT FOR PROFESSIONAL SERVICES (“Agreement”) is made and entered into this 13th day of October 2026 by and between CITY OF PERRIS, a California municipal corporation (“City”) and PACIFIC CODE COMPLIANCE LLC, a California limited liability company (“Consultant”). City and Consultant may be referred to individually as “Party” or collectively as “Parties.”
RECITALS
A. Pursuant to the Perris Municipal Code, City has the authority to enter into and execute this Agreement.
B. The Parties desire to formalize the selection of Consultant for performance of those services defined and described particularly in this Agreement and desire that the terms of that performance be as particularly defined and described herein.
OPERATIVE PROVISIONS
NOW, THEREFORE, in consideration of the mutual promises and covenants made by the Parties and contained herein and other consideration, the value and adequacy of which are hereby acknowledged, the Parties agree as follows:
ARTICLE 1. SERVICES OF CONSULTANT
1.1 Scope of Services. In compliance with all terms and conditions of this Agreement, Consultant shall provide those services specified in the “Scope of Services” attached hereto as Exhibit A and incorporated herein by this reference, which may be referred to herein as the “services” or “work” hereunder. As a material inducement to City entering into this Agreement, Consultant represents and warrants: a) all services set forth in the Scope of Services will be performed in a competent and satisfactory manner; b) all materials used for services will be both of good quality as well as fit for the purpose intended; and, c) Consultant shall follow the highest professional standards and practices in performing the services required hereunder.
1.2 Consultant’s Proposal. The Scope of Services shall include the scope of services or work included in Consultant’s proposal or bid, which shall be incorporated herein by this reference as though fully set forth herein. In the event of any inconsistency between the terms of such proposal or bid, and this Agreement, the terms of this Agreement shall govern. No other terms and conditions from Consultant’s proposal or bid, other than description of scope of services or work, shall apply to this Agreement, unless specifically agreed to by City in writing.
1.3 Compliance with Law. All services rendered hereunder shall be provided in accordance with all ordinances, resolutions, statutes, rules and regulations of City and any federal, State or local governmental agency having jurisdiction in effect at the time services are rendered. 255
City, and its officers, employees and agents, shall not be liable at law or in equity for failure of Consultant to comply with this Section.
1.4 Licenses, Permits, Fees and Assessments. Consultant shall obtain at its sole cost and expense such licenses, permits and approvals as may be required by law for the performance of the services required by this Agreement. Consultant shall have the sole obligation to pay for any fees, assessments and taxes, plus applicable penalties and interest, which may be imposed by law and arise from or are necessary for Consultant’s performance of the services required by this Agreement, and shall indemnify, defend and hold harmless City against any such fees, assessments, taxes, penalties or interest levied, assessed or imposed against City hereunder.
1.5 Additional Services and Compensation. City shall have the right at any time during the performance of the services, without invalidating this Agreement, to order extra work beyond that specified in the Scope of Services or make changes to the work by altering, adding to or deducting from said work. No such extra work may be undertaken unless a written order, consistent with both Section 9.4 as well as the Perris Municipal Code (“PMC”), is first given by City to Consultant, incorporating therein any adjustment in the Contract Sum for the actual costs of the extra work and/or the time to perform this Agreement, which said adjustments are subject to the written approval of Consultant. Any increase in the Contract Sum of up to ten percent (10%) of the Contract Sum or $40,000, whichever is less, may be approved by the City Manager pursuant to Section 9.4. Any greater increases, taken either separately or cumulatively, must be approved by the City Council. It is expressly understood by Consultant that the provisions of this Section shall not apply to services specifically set forth in the Scope of Services or reasonably contemplated therein. Consultant hereby acknowledges that it accepts the risk that the services to be provided pursuant to the Scope of Services may be more costly or time consuming than Consultant anticipates and that Consultant shall not be entitled to additional compensation therefor.
City may in its sole and absolute discretion have similar work done by other consultants.
1.6 Familiarity with Work. By executing this Agreement, Consultant represents and warrants Consultant: a) has thoroughly investigated and considered services to be performed, b) has carefully considered how services should be performed, and c) fully understands the facilities, difficulties and restrictions attending performance of services under this Agreement.
1.7 Software and Computer Services. If the Scope of Services includes the provision and/or installation of any software, computer system, or other computer technology, Consultant represents and warrants that it is familiar with and/or has inspected City’s current infrastructure, equipment, computer system and software and that the software, computer system, or other computer technology provided and/or installed by Consultant under this Agreement is compatible, and shall be fully functional, with such infrastructure, equipment, computer system and software of City. Consultant acknowledges that City is relying on this representation by Consultant as a material consideration in entering into this Agreement.
1.8 Prevailing Wages. If services include any “public work” or “maintenance work,” as those terms are defined in California Labor Code section 1720 et seq. and California Code of Regulations, Title 8, section 16000 et seq., and if the total compensation is $1,000 or more, 256
Consultant shall pay prevailing wages for such work and comply with the requirements in California Labor Code section 1770 et seq. and 1810 et seq., and all other applicable laws.
1.9 Special Requirements. Additional terms and conditions of this Agreement, if any, which are made a part hereof are set forth in the “Special Requirements” attached hereto as Exhibit B and incorporated herein by this reference. In the event of a conflict between the provisions of Exhibit B and any other provisions of this Agreement, the provisions of Exhibit B shall govern.
ARTICLE 2. COMPENSATION AND METHOD OF PAYMENT
2.1 Contract Sum. Subject to any limitations set forth in this Agreement, City agrees to pay Consultant the amounts specified in the “Schedule of Compensation” attached hereto as Exhibit C and incorporated herein by this reference. The total compensation, including reimbursement for actual expenses, shall not exceed Two Hundred Sixty Thousand Dollars and Zero Cents ($260,000.00) (“Contract Sum”), unless additional compensation is approved pursuant to Section 1.5. Compensation may include reimbursement, for actual and necessary expenditures, if both specified in the Schedule of Compensation, as well as approved by City in advance. The Contract Sum shall include the attendance of Consultant at all project meetings reasonably deemed necessary by City. Consultant agrees that if Consultant becomes aware of any facts, circumstances, techniques, or events that may or will materially increase or decrease the cost of the work or services, Consultant shall promptly notify the Contract Officer of said fact, circumstance, technique or event and the estimated increased or decreased cost related thereto.
2.2 Invoices. Unless some other method of payment is specified in Exhibit C, Schedule of Compensation, in any month in which Consultant wishes to receive payment, no later than the first business day of such month, Consultant shall submit to City, in a form approved by City’s Finance Director, an invoice for services rendered prior to the date of the invoice. By submitting an invoice for payment under this Agreement, Consultant is certifying compliance with all provisions of this Agreement. Except as provided in Sections 7.3, 7.4 and 7.5, City shall pay Consultant for all expenses stated thereon which are approved by City pursuant to this Agreement generally within thirty (30) days, and City will use its best efforts to make payment no later than forty-five (45) days, from the submission of an invoice in an approved form. In the event any charges or expenses are disputed by City, the original invoice shall be returned by City to Consultant for correction and resubmission. Review and payment by City for any invoice provided by Consultant shall not constitute a waiver of any rights or remedies provided herein or any applicable law. Each invoice is to include (unless otherwise specified by City): 1) line items for all personnel describing the work performed, the number of hours worked, and the hourly rate; 2) line items for all materials and equipment properly charged to the Services; 3) line items for all other approved reimbursable expenses claimed, with supporting documentation; and 4) line items for all approved subcontractor labor, supplies, equipment, materials, and travel properly charged to the Services.
ARTICLE 3. PERFORMANCE SCHEDULE
3.1 Time of Essence. Time is of the essence in the performance of this Agreement.
3.2 Term. Unless earlier terminated in accordance with Article 7 of this Agreement, this Agreement shall continue in full force and effect until completion of the services, which shall 257
be no later than December 30, 2027 (“Term”).
3.3 Schedule of Performance. Consultant shall commence the services pursuant to this Agreement upon receipt of a written notice to proceed and shall perform all services within the time period(s) established in the “Schedule of Performance” attached hereto as Exhibit D and incorporated herein by this reference. Such time period(s) may be increased by the Contract Officer, provided that such increases shall not serve to extend the Term.
3.4 Force Majeure. The time period(s) specified in the Schedule of Performance for performance of the services rendered pursuant to this Agreement shall be extended because of any delays due to unforeseeable causes beyond the control and without the fault or negligence of Consultant, including, but not restricted to, acts of God or of the public enemy, unusually severe weather, fires, earthquakes, floods, epidemics, quarantine restrictions, riots, strikes, freight embargoes, wars, litigation, and/or acts of any governmental agency, including City, if Consultant shall within ten (10) days of the commencement of such delay notify City in writing of the causes of the delay. City shall ascertain the facts and the extent of delay and extend the time for performing the services for the period of the enforced delay when and if in the judgment of City such delay is justified. City’s determination shall be final and conclusive upon the Parties to this Agreement. In no event shall Consultant be entitled to recover damages against City for any delay in the performance of this Agreement, however caused, Consultant’s sole remedy being extension of this Agreement pursuant to this Section.
ARTICLE 4. COORDINATION OF WORK
4.1 Representative of Consultant. The representative of Consultant is David J.
Martinez, CEO, 909-583-1579 [[email protected]], who is authorized to act on Consultant’s behalf with respect to the work or services specified herein and to make all decisions in connection therewith. It is expressly understood that the experience, knowledge, capability and reputation of the representative was a substantial inducement for City to enter into this Agreement. Therefore, the representative shall be responsible during the term of this Agreement for directing all activities of Consultant and devoting sufficient time to personally supervise the services hereunder. For purposes of this Agreement, the representative may not be replaced nor may their responsibilities be substantially reduced by Consultant without the express written approval of City.
4.2 Contract Officer for City. The Contract Officer for City is Ernie Reyna, CPA, MPA, Assistant City Manager, 951-943-6100, [email protected] (or such person as may be designated by the City Manager). The Contract Officer shall be the primary person on behalf of City responsible for the administration of the Agreement. It shall be Consultant’s responsibility to assure that the Contract Officer is kept informed of both the progress of the performance of the services as well as any decisions which must be made by City.
4.3 Approvals from City. City approvals or actions, pursuant to the authority of this Agreement, are to be made (unless otherwise specified) either by the City Manager or by their delegate as provided for in writing.
4.4 Independent Contractor. Neither City, nor any of its officers, employees or agents, shall have any control over the manner or means by which Consultant, or its officers, employees, agents or subcontractors, perform the services required herein, except as otherwise set 258
forth herein. Consultant shall perform all services required herein as an independent contractor of City and shall remain under only such obligations as are consistent with that role. Consultant shall not at any time or in any manner represent that it, or any of its officers, employees, agents or subcontractors, are officers, employees or agents of City. City shall not in any way or for any purpose become or be deemed to be a partner of Consultant in its business or otherwise or a joint venturer or a member of any joint enterprise with Consultant. Consultant shall not incur or have the power to incur any debt, obligation or liability whatever against City, or bind City in any manner. Consultant represents and warrants that the personnel used to provide services to City pursuant to this Agreement shall at all times be under Consultant’s exclusive control and direction.
No City employee benefits shall be available to Consultant, its officers, employees, agents or subcontractors, in connection with the performance of this Agreement. City shall not be liable for compensation or indemnification to Consultant, its officers, employees, agents or subcontractors, for injury or sickness arising out of performing services hereunder. In the event that Consultant or any officer, employee, agent, or subcontractor of Consultant providing services under this Agreement claims or is determined by a federal or state agency, a court of competent jurisdiction, or the California Public Employees’ Retirement System, to be classified as other than an independent contractor for City, then Consultant shall indemnify, defend, and hold harmless City for the payment of any and all assessed fines, penalties, judgments, employee and/or employer contributions, and any other damages and costs assessed to City as a consequence of, or in any way attributable to, the assertion that Consultant, or any officer, employee, agent, or subcontractor Consultant used to provide services under this Agreement, is/are employees of City.
4.5 Subcontracting or Assignment. The experience, knowledge, capability and reputation of Consultant, its principals and employees were a substantial inducement for City to enter into this Agreement. Therefore, without express written approval of City, Consultant shall not contract with any other entity to perform in whole or in part services required hereunder without express written approval of City, and neither this Agreement nor any interest herein may be transferred or assigned. No approved transfer shall release Consultant, or any surety or insured of Consultant, of any liability hereunder without express written consent of City.
ARTICLE 5. INSURANCE AND INDEMNIFICATION
5.1 Insurance Coverages. Prior to commencement of any services under this Agreement, and without limiting Consultant’s indemnification obligation to City, Consultant shall procure and maintain, at its sole cost and expense, in a form and content satisfactory to City, for the duration of the Agreement, primary policies of insurance of the type and amounts below, issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance or is on the List of Approved Surplus Line Insurers in the State of California, with an assigned policyholders’ Rating of A- (or higher) and Financial Size Category Class VII (or larger) in accordance with the latest edition of Best’s Key Rating Guide, unless otherwise approved by City, which shall cover all elected and appointed officers, employees and agents of City. City reserves the right at any time during the term of the Agreement to change the amounts and types of insurance required by giving Consultant ninety (90) days advance written notice of such change.
If such change results in substantial additional cost to Consultant, City and Consultant may renegotiate Consultant’s compensation.
(a) Commercial General Liability Insurance. A policy of commercial general liability insurance, with coverage at least as broad as Insurance Services Office (“ISO”) 259
form CG 00 01, written on a per occurrence basis for bodily injury, personal injury and property damage. Defense costs must be paid in addition to limits. Coverage for an additional insured shall not be limited to its vicarious liability. The policy must include contractual liability that has not been amended. Any endorsement restricting standard ISO “insured contract” language will not be accepted. Limits shall be no less than $2,000,000 per occurrence for all covered losses and no less than $4,000,000 general aggregate.
(b) Worker’s Compensation Insurance. A policy of worker’s compensation insurance in such amount as will fully comply with the laws of the State of California and which shall indemnify, insure and provide legal defense for Consultant against any loss, claim or damage arising from any injuries or occupational diseases occurring to any worker employed by or any persons retained by Consultant in the course of carrying out the work or services contemplated in this Agreement.
(c) Automobile Liability. A policy of comprehensive automobile liability insurance, at least as broad as ISO form CA 00 01, written on a per occurrence basis covering bodily injury and property damage in an amount not less than $1,000,000 combined single limit for each accident. Said policy shall include coverage for owned, non-owned, leased, hired cars and any automobile.
(d) Professional Liability. Professional liability insurance appropriate to Consultant’s profession. This coverage may be written on a “claims made” basis and must include coverage for contractual liability. Any policy inception date, continuity date, or retroactive date must be before the effective date of this Agreement. The professional liability insurance required by this Agreement must be endorsed to be applicable to claims based upon, arising out of, or related to services performed under this Agreement. The insurance must be maintained for at least five (5) consecutive years following the completion of Consultant’s services or the termination of this Agreement. During this additional 5-year period, Consultant shall annually and upon request of City submit written evidence of this continuous coverage. Limits shall be no less than $2,000,000 per claim and no less than $4,000,000 general aggregate. (e) Cyber Liability. Cyber liability insurance appropriate to Consultant’s profession and the services hereunder, written on a per occurrence basis, with limits not less than $1,000,000 per occurrence/loss, and $2,000,000 in the aggregate. Coverage shall be sufficiently broad to respond to the duties and obligations undertaken by Consultant pursuant to this Agreement and shall include, but not be limited to, claims involving: infringement of intellectual property; copyright; trademark; invasion of privacy violations; data breach; electronic information theft, loss, damage, destruction, alteration or misuse; release of private information; extortion; and, network security. The policy shall provide coverage for breach response costs, regulatory fines and penalties, and credit monitoring expenses, with limits sufficient to respond to these obligations.
(f) Excess Liability Insurance. Excess liability insurance may be used to satisfy the obligations herein. If excess liability insurance is used then the policy shall meet all the requirements herein and be at least as broad as the primary coverages set forth herein. Such policy shall: 1) include a drop down feature requiring the policy to respond if primary insurance that would otherwise have applied proves to be uncollectible in whole or in part for any reason; 2) be payable on behalf of wording as opposed to reimbursement; 3) have concurrency of effective dates 260
with primary policies; 4) “follow form” to the underlying primary policies; and, 5) provide insureds, under primary policies required herein, shall be insureds under the excess liability policy. (g) Subcontractors. In the event Consultant subcontracts any portion of the work in compliance with Section 4.5 of this Agreement, Consultant shall either: 1) include each subcontractor as insureds under its policies of insurance required herein; or, 2) Consultant shall furnish to City all documentation, required in Article 5 for Consultant, for each subcontractor. All coverages for subcontractors shall include all of the requirements stated herein.
5.2 General Insurance Requirements.
(a) Proof of Insurance, Enforcement and Notice. No work or services under this Agreement shall commence until both Consultant has provided City with insurance certificates, endorsement forms and appropriate insurance binders evidencing the above insurance coverages, as well as said documentation is approved by City. City reserves the right to inspect complete, certified copies of, and endorsements to, all required insurance policies, at any time.
Any failure to comply with the reporting or other provisions of the policies including breaches or warranties shall not affect coverage provided to City. In the event any insurance policy required under this Agreement is cancelled or amended (and the insurance policy is not replaced pursuant to subsection (b) below), or does not comply with Article 5, then: 1) City has the right but not the duty to obtain insurance required herein and any premium paid by City will be promptly reimbursed by Consultant or City will withhold amounts sufficient to pay premium from Consultant payments; or, 2) City, notwithstanding any other provisions of this Agreement, may immediately terminate this Agreement. Consultant shall give City prompt and timely notice of claims made or suits instituted that arise out of or result from Consultant’s performance under this Agreement, and that involve or may involve coverage under any of the required insurance policies. (b) Cancellation/Amendment. All of herein required policies of insurance shall provide the insurance may not be amended or cancelled by insurer or any Party hereto without providing thirty (30) calendar days prior written notice (with exception of ten (10) calendar days prior written notice for nonpayment) to City. In the event any of said policies of insurance are amended or cancelled, Consultant shall, five (5) business days prior to the cancellation date, submit new evidence of insurance in conformance with this Agreement to City. (c) Additional Insureds. The commercial general liability policy provided for in Section 5.1(a) and the automobile liability policy provided for in Section 5.1(c) both shall name City and its elected and appointed officers, employees and agents (“City Parties”) as additional insureds and such coverage shall contain no special limitations on the scope of protection afforded to City and City Parties. A severability of interests provision must apply for all additional insureds ensuring that Consultant’s insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer’s liability, and policies of insurance shall not contain any cross-liability exclusions. (d) Primary, Subrogation, Contribution and Coverage. All of the above policies of insurance shall be primary insurance. The insurers for the above policies, Consultant and any subcontractors are all deemed hereof to waive all rights of subrogation and contribution they may have against City or City Parties, and their respective insurers, and all insurance policies required herein shall be endorsed to waive such rights. Any insurance maintained by City or City 261
Parties will apply in excess of, and not contribute with, Consultant’s insurance. If Consultant maintains broader coverage and/or higher limits than the minimum amounts provided herein, City requires and shall be entitled to the broader coverage and/or higher limits maintained by Consultant. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to City and City Parties. None of the coverages required herein will be in compliance with this Agreement if they include any limiting endorsement of any kind that has not been first submitted to City and approved of in writing. Requirements of specific coverage features or limits contained herein are not intended as a limitation on coverage, limits or other requirements, or a waiver of any coverage normally provided by any insurance. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue and is not intended by any Party or insured to be all inclusive, or to the exclusion of other coverage, or a waiver of any type.
(e) Limitations, Self- Insured Retention and Deductibles. Consultant agrees that requirements of Article 5 shall not be construed as limiting in any way the extent to which Consultant may be held responsible for the payment of damages to any persons or property resulting from Consultant’s activities or the activities of any person or persons for which Consultant is otherwise responsible nor shall it limit Consultant’s indemnification liabilities as provided in Section 5.3. All insurance policies must specify that where the primary insured does not satisfy any self-insured retention, any additional insured may satisfy the self-insured retention.
Any deductibles or self-insured retentions must be declared to and approved by City. At City’s option, either the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects City and City Parties, or Consultant shall procure a bond guaranteeing payment of losses and related investigations, claim administration, attorneys’ fees, defense expenses and claims.
5.3 Indemnification.
(a) General Obligations. Consultant agrees, to the full extent permitted by law, to indemnify, defend and hold harmless City and its elected and appointed officers, employees and agents (each an “Indemnitee” and collectively, “Indemnitees”) against, and will hold and save them and each of them harmless from, whether actual or threatened, any and all actions, either judicial, administrative, arbitration or regulatory claims, damages to persons or property, losses, costs, penalties, obligations, errors, omissions or liabilities (herein “Claims or Liabilities”) that may be asserted or claimed by any person, firm or entity arising out of or in connection with the negligent performance of the work, operations or activities provided herein of Consultant, its officers, employees, agents, subcontractors, or invitees, or any individual or entity for which Consultant is legally liable (each an “Indemnitor” and collectively, “Indemnitors”), or arising from Indemnitors’ reckless or willful misconduct, or arising from Indemnitors’ negligent performance of or failure to perform any term, provision, covenant or condition of this Agreement, and in connection therewith: 1) Consultant will defend any action or actions filed or threatened in connection with any such Claims or Liabilities, or at option of Indemnitee(s) will reimburse and pay for all costs and expenses, including legal costs and attorneys’ fees, incurred by Indemnitee(s) in connection therewith; and, 2) Consultant will promptly pay any judgment rendered against Indemnitee(s) for any such Claims or Liabilities, and will save and hold Indemnitee(s) harmless therefrom.
(b) Further Provisions. The indemnity obligation herein shall be binding on successors, assigns and heirs of Consultant and shall survive termination of this Agreement. 262
Consultant shall incorporate similar indemnity agreements as provided herein with its subcontractors, and if Consultant fails to do so Consultant shall be fully responsible to indemnify City hereunder therefor. Failure of City and/or City Parties (collectively “City” for solely this Section 5.3(b)) to monitor compliance with any of the indemnification provisions herein shall not be a waiver hereof. The indemnification provisions herein do not apply to claims or liabilities occurring as a result of City’s sole negligence or willful misconduct, but, to the fullest extent permitted by law, shall apply to claims and liabilities resulting in part from City’s negligence, except that design professionals’ indemnity hereunder shall be limited to claims and liabilities arising out of the negligence, recklessness or willful misconduct of the design professional. The indemnification provided herein includes Claims or Liabilities arising from any negligent or wrongful act, error or omission, or reckless or willful misconduct of Indemnitors in the performance of professional services hereunder. Payment of invoices by City is not a condition precedent to enforcement of the indemnity obligation herein. In the event of any dispute between Consultant and City, as to whether liability arises from the sole negligence or willful misconduct of City, Consultant will be obligated to pay for City’s defense until such time as a final judgment has been entered adjudicating City as solely negligent or responsible for willful misconduct.
Consultant will not be entitled in the absence of such a determination to any reimbursement of defense costs including but not limited to attorneys’ fees, expert fees and costs of litigation. (c) Professional Liability. When the law establishes a professional standard of care for Consultant’s services, to the fullest extent permitted by law, Consultant shall indemnify, defend and hold harmless Indemnitees against, and will hold and save them and each of them harmless from, whether actual or threatened, any and all Claims and Liabilities, consistent with all obligations provided for in this Section 5.3, to the extent same are caused in whole or in part by any negligent or wrongful act, error or omission, or reckless or willful misconduct of Indemnitors in the performance of professional services under this Agreement.
ARTICLE 6. RECORDS, REPORTS AND RELEASE OF INFORMATION
6.1 Records. Consultant shall keep, and require subcontractors to keep, such ledgers, books of accounts, invoices, vouchers, canceled checks, reports, studies or other documents relating to the disbursements charged to City and services performed hereunder (“books and records”) as shall be necessary to perform the services required by this Agreement and enable City to evaluate the performance of such services. Any and all such books and records shall be maintained in accordance with generally accepted accounting principles, shall be complete and detailed, and shall be readily accessible. City shall have full and free access to such books and records at all times during normal business hours of City, including the right to inspect, copy, audit and make records and transcripts. Such books and records shall be maintained for a period of three (3) years following completion of the services hereunder. City shall have access to such books and records in the event any audit is required. Consultant shall fully cooperate with City in providing access to any and all Consultant records and documents if a public records request is made and disclosure is required by law including but not limited to the California Public Records Act.
6.2 Ownership of Documents. All drawings, specifications, maps, designs, photographs, studies, surveys, data, notes, computer files, reports, records, documents and other materials (“documents and materials”) prepared by Consultant, its officers, employees, agents and subcontractors in the performance of this Agreement shall be the property of City and shall be delivered to City upon request of City and/or upon the termination of this Agreement, and 263
Consultant shall have no claim for further employment or additional compensation as a result of the exercise by City of its full rights of ownership, use, reuse, or assignment of the documents and materials hereunder. Consultant may retain copies of such documents and materials for its own use. Consultant shall have the right to use the concepts embodied therein. All subcontractors shall provide for assignment to City of any documents and materials prepared by them, and in the event Consultant fails to secure such assignment, Consultant shall indemnify City for all damages resulting therefrom. Moreover, with respect to any Consultant documents and materials that may qualify as “works made for hire” as defined in 17 U.S.C. § 101, such documents and materials are hereby deemed “works made for hire” for City.
6.3 Confidentiality and Release of Information. All information gained or work product produced by Consultant in its performance of this Agreement shall be considered confidential, unless such information is in the public domain or already known to Consultant.
Consultant shall not release or disclose any such information or work product to persons or entities other than City without prior written authorization from City. Consultant, its officers, employees, agents or subcontractors, shall not, without prior written authorization from City or unless requested by the City Attorney, voluntarily provide documents, declarations, letters of support, testimony at depositions, response to interrogatories or other information concerning the work performed under this Agreement. Response to a subpoena or court order shall not be considered “voluntary” provided Consultant immediately gives City notice of such court order or subpoena.
If Consultant, or any officer, employee, agent or subcontractor of Consultant, provides any information or work product in violation of this Agreement, then City shall have the right to reimbursement and indemnity from Consultant for any damages, costs and fees, including attorneys’ fees, caused by or incurred as a result of Consultant’s conduct. As concerning, regarding or related to, in any way, this Agreement and the work performed thereunder: a) Consultant shall immediately notify City should Consultant, its officers, employees, agents or subcontractors be served with any summons, complaint, subpoena, notice of deposition, request for documents, interrogatories, request for admissions or other discovery request, court order or subpoena from any party; b) City retains the right, but has no obligation, to represent Consultant or be present at any deposition, hearing or similar proceeding; and, c) Consultant agrees to cooperate fully with City and to provide City with the opportunity to review any response to discovery requests provided by Consultant, however, this right to review any such response does not imply or mean the right by City to control, direct, or rewrite said response.
ARTICLE 7. ENFORCEMENT OF AGREEMENT AND TERMINATION
7.1 California Law. This Agreement shall be interpreted, construed and governed both as to validity and to performance of the Parties in accordance with the laws of the State of California. Legal actions concerning any dispute, claim or matter arising out of or in relation to this Agreement shall be instituted in the Superior Court of the County of Riverside, State of California, or any other appropriate court in such county, and Consultant agrees to submit to the personal jurisdiction of such court in the event of such action. In the event of litigation in a U.S.
District Court, venue shall lie exclusively in the Central District of California, in the County of Riverside, State of California.
7.2 Suspension, or Termination, Prior to Expiration of Term. This Section shall govern any termination of this Agreement except as specifically provided in Section 7.4 for termination for cause. City reserves the right to terminate or suspend this Agreement, or any 264
portion hereof, at any time, for any reason, with or without cause, upon thirty (30) days’ notice to Consultant, except that where termination or suspension is due to the fault of Consultant, the period of notice may be such shorter time as determined by City. Upon receipt of any notice of termination or suspension, Consultant shall immediately cease all services hereunder, unless the notice provides otherwise, or except such as specifically approved by City. Upon submittal of an invoice consistent with Section 2.2, Consultant shall be entitled to compensation for all services rendered prior to the effective date of the notice of termination or suspension and for any services authorized by City thereafter in accordance with the Schedule of Compensation, or such as may be approved by City, except as provided in Section 7.5. In event of termination, or suspension, without cause pursuant to this Section, there is no need to provide opportunity to cure pursuant to Section 7.3.
7.3 Default of Consultant and Opportunity to Cure. In the event that Consultant is in default under the terms of this Agreement, City shall not have any obligation or duty to continue compensating Consultant for any work performed after the date of default. Instead, City may give notice to Consultant of the default and the reasons for the default. The notice shall include the timeframe in which Consultant may cure the default. This timeframe is presumptively ten (10) days, but may be extended, or reduced, if circumstances warrant, as determined by City. During the period of time that Consultant is in default, City shall hold all invoices and shall, when the default is cured, proceed with payment on the invoices, without liability for interest. In the alternative, City may, in its sole discretion, elect to pay some or all of the outstanding invoices during the period of default. If Consultant does not cure the default by conclusion of noticed timeframe, City may immediately both terminate this Agreement with notice to Consultant as well as pursue the remedy in Section 7.4, without prejudice to any other remedy to which City may be entitled at law, in equity or under this Agreement. Any failure on the part of City to give notice of Consultant’s default shall not be deemed to result in a waiver of City’s legal rights or any rights arising out of any provision of this Agreement.
7.4 Termination for Default of Consultant. If termination is due to the failure of Consultant to fulfill its obligations under this Agreement, City may, after compliance with the provisions of Section 7.3, take over the work and prosecute the same to completion by contract or otherwise, and Consultant shall be liable to the extent that the total cost for completion of the services required hereunder exceeds the compensation herein stipulated (provided that City shall use reasonable efforts to mitigate such damages), and City may withhold any payments to Consultant for the purpose of set-off or partial payment of the amounts owed the City therefor.
7.5 Retention of Funds. Consultant hereby authorizes City to deduct from any amount payable to Consultant (whether or not arising out of this Agreement) (i) any amounts the payment of which may be in dispute hereunder or which are necessary to compensate City for any losses, costs, liabilities, or damages suffered by City, and (ii) all amounts for which City may be liable to third parties, by reason of Consultant’s acts or omissions in performing or failing to perform Consultant’s obligation under this Agreement. In the event that any claim is made by a third party, the amount or validity of which is disputed by Consultant, or any indebtedness shall exist which shall appear to be the basis for a claim of lien, City may withhold from any payment due, without liability for interest because of such withholding, an amount sufficient to cover such claim. The 265
failure of City to exercise such right to deduct or to withhold shall not, however, affect the obligations of Consultant to insure, indemnify, and protect City as elsewhere provided herein.
7.6 Waiver. Waiver by any Party to this Agreement of any term, condition, or covenant of this Agreement shall not constitute a waiver of any other term, condition, or covenant. Waiver by any Party of any breach of the provisions of this Agreement shall not constitute a waiver of any other provision or a waiver of any subsequent breach or violation of any provision of this Agreement. Acceptance by City of any work or services by Consultant shall not constitute a waiver of any of the provisions of this Agreement. No delay or omission in the exercise of any right or remedy by a non-defaulting Party on any default shall impair such right or remedy or be construed as a waiver. Any waiver by either Party of any default must be in writing and shall not be a waiver of any other default concerning the same or any other provision of this Agreement. Consultant acknowledges and agrees that any actual or alleged failure on the part of City to inform Consultant of non-compliance with any requirement of this Agreement imposes no additional obligations on City nor does it waive any rights hereunder. Payment to Consultant for work performed pursuant to this Agreement shall not be deemed to waive any defects in work performed by Consultant.
7.7 Rights and Remedies are Cumulative. Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the Parties are cumulative and the exercise by either Party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other Party.
7.8 Legal Action. In addition to any other rights or remedies, either Party may take legal action, in law or in equity, to cure, correct or remedy any default, to recover damages for any default, to compel specific performance of this Agreement, to obtain declaratory or injunctive relief, or to obtain any other remedy consistent with the purposes of this Agreement.
Notwithstanding any contrary provision herein, Consultant shall file a statutory claim pursuant to Government Code sections 905 et seq. and 910 et seq., in order to pursue a legal action under this Agreement.
7.9 Attorneys’ Fees. If either Party to this Agreement is required to initiate or defend or made a party to any action or proceeding in any way connected with this Agreement, the prevailing party in such action or proceeding, in addition to any other relief which may be granted, whether legal or equitable, shall be entitled to reasonable attorneys’ fees. Attorneys’ fees shall include attorneys’ fees on any appeal, and a Party entitled to attorneys’ fees shall be entitled to all other reasonable costs for investigating such action, consultants’ fees, taking depositions and discovery and all other necessary costs the court allows which are incurred in such litigation. Such fees and costs shall be enforceable whether or not such action is prosecuted to judgment.
ARTICLE 8. INDIVIDUAL LIABILITY, CONFLICTS AND NON-DISCRIMINATION
8.1 Non-liability of City Officers and Employees. No officer or employee of City shall be personally liable to Consultant, or any successor in interest, in the event of any default or breach by City or for any amount which may become due to Consultant or to its successor, or for breach of any obligation of the terms of this Agreement.
8.2 Conflict of Interest. Consultant covenants that neither it, nor any officer or 266
principal of its firm, has or shall acquire any interest, directly or indirectly, which would conflict in any manner with the interests of City or which would in any way hinder Consultant’s performance of services under this Agreement. Consultant further covenants that in the performance of this Agreement, no person having any such interest shall be employed by it as an officer, employee, agent or subcontractor without the express written consent of City. Consultant agrees to at all times avoid conflicts of interest or the appearance of any conflicts of interest with the interests of City in the performance of this Agreement. City, in its sole discretion, shall determine the existence of a conflict of interest and may terminate this Agreement in the event such a conflict of interest exists upon sending Consultant written notice describing the conflict.
No officer or employee of City shall have any financial interest, direct or indirect, in this Agreement nor shall any such officer or employee participate in any decision relating to this Agreement which affects their financial interest or the financial interest of any corporation, partnership or association in which they are, directly or indirectly, interested, in violation of any State statute or regulation. Consultant warrants that it has not paid or given and will not pay or give any third party any money or other consideration for obtaining this Agreement.
8.3 Covenant Against Discrimination. Consultant covenants that, by and for itself, its heirs, executors, assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of race, color, creed, religion, sex, gender, sexual orientation, marital status, national origin, ancestry or other protected class in the performance of this Agreement. Consultant shall take affirmative action to insure that applicants are employed and that employees are treated during employment without regard to their race, color, creed, religion, sex, gender, sexual orientation, marital status, national origin, ancestry or other protected class.
ARTICLE 9. MISCELLANEOUS PROVISIONS
9.1 Notices. Any notice or other communication either Party desires or is required to give to the other Party or any other person in regards to this Agreement must be in writing and may be given either by (i) personal service, (ii) delivery by a reputable document delivery service, such as but not limited to, Federal Express, which provides a receipt showing date and time of delivery, or (iii) mailing in the United States Mail, certified mail, postage prepaid, return receipt requested, in the case of City addressed to the Contract Officer at City of Perris, 101 N. “D” Street, Perris, CA 92570, and in the case of Consultant, to the person(s) at the address designated on the execution page of this Agreement. Either Party may change its address by notifying the other Party of the change of address in writing. Notice shall be deemed communicated at the time personally delivered or in seventy-two (72) hours from the time of mailing if mailed as provided in this Section.
9.2 Interpretation. The terms of this Agreement shall be construed in accordance with the meaning of the language used and shall not be construed for or against either Party by reason of the authorship of this Agreement, headings used, or any other rule of construction which might otherwise apply.
9.3 Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original, and such counterparts shall constitute one and the same instrument, whether the signatures are originals, electronic, or digital. 267
9.4 Integration; Amendment. This Agreement including the attachments hereto is the entire, complete and exclusive expression of the understanding of the Parties as to the Agreement.
It is understood that there are no oral agreements between the Parties hereto affecting this Agreement, and this Agreement supersedes and cancels any and all prior and contemporaneous negotiations, arrangements, agreements and understandings, if any, between the Parties, concerning this Agreement, and none shall be used to interpret this Agreement. No amendment to or modification of this Agreement shall be valid unless made in writing and approved by Consultant and by City, provided that City’s approval thereof shall only be valid if made in a manner consistent with the PMC.
9.5 Severability. Should a portion of this Agreement be declared invalid or unenforceable by a judgment or decree of a court of competent jurisdiction, such invalidity or unenforceability shall not affect any of the remaining portions of this Agreement which are hereby declared as severable and shall be interpreted to carry out the intent of the Parties unless the invalid provision is so material that its invalidity deprives either Party of the basic benefit of their bargain or renders this Agreement meaningless.
9.6 No Undue Influence. Consultant declares and warrants that no undue influence or pressure was used against or in concert with any officer or employee of City in connection with the award, terms or implementation of this Agreement, including any method of coercion, confidential financial arrangement, or financial inducement. No officer or employee of City has or will receive compensation, directly or indirectly, from Consultant, or from any officer, employee or agent of Consultant, in connection with the award of this Agreement or any work to be conducted as a result of this Agreement. Violation of this Section shall be a material breach of this Agreement entitling City to remedies in Section 7.4 and any and all remedies at law or equity.
9.7 Corporate Authority. The persons executing this Agreement on behalf of the Parties hereto warrant that (i) such Party is duly organized and existing, (ii) they are duly authorized to execute and deliver this Agreement on behalf of said Party, (iii) by so executing this Agreement, such Party is formally bound to the provisions of this Agreement, and (iv) entering into this Agreement does not violate any provision of any other agreement to which said Party is bound. This Agreement shall be binding upon the heirs, executors, administrators, successors and assigns of the Parties.
[SIGNATURES ON FOLLOWING PAGE]
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01006.0006 2198665.1 9/28/2026 -16-
IN WITNESS WHEREOF, the Parties hereto have executed this Agreement on the date and year first-above written.
CITY:
CITY OF PERRIS, a California municipal
corporation
_____________________________________
Clara Miramontes
City Manager
ATTEST:
_____________________________________
Nancy Salazar, City Clerk
APPROVED AS TO FORM:
ALESHIRE & WYNDER, LLP
_____________________________________
Sunny K. Soltani, City Attorney
[pks; rjl]
CONSULTANT:
PACIFIC CODE COMPLIANCE LLC, a
California limited liability company
By: _________________________________
Name: David Martinez
Title: Chief Executive Officer
By: _________________________________
Name:
Title:
Address: 844 W. Highlands Ave.
Redlands, CA 92373
If Consultant is a limited liability company, any one of the following options will satisfy City’s signature requirements pursuant to the Corporations Code. Option A: One signature required from each of the following groups: 1) Chairman of the Board, President or any Vice President; and 2) Secretary, any Assistant Secretary, Chief Financial Officer or any Assistant Treasurer. Option B: Signatures required from two managers unless the LLC is managed by one manager per its articles of organization, in which case only one signature from that manager is required. Option C: One signature required from any member unless the LLC is manager-managed per its articles of organization. Option D: One signature required from any manager if the LLC is managermanaged per its articles of organization. APPROPRIATE ATTESTATIONS SHALL BE INCLUDED AS
MAY BE REQUIRED BY THE BYLAWS, ARTICLES OF INCORPORATION, OR OTHER RULES OR REGULATIONS APPLICABLE TO CONTRACTOR’S BUSINESS ENTITY. 269
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EXHIBIT A
SCOPE OF SERVICES
I. Consultant will perform the Services described in Consultant’s Proposal and detailed below in providing project management services and Davis Bacon prevailing wage oversight to support the construction of the new fire station. 270
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II. All work product is subject to review and acceptance by City and must be revised by Consultant without additional charge to City until found satisfactory and accepted by City.
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EXHIBIT B
SPECIAL REQUIREMENTS
(Superseding Agreement Boilerplate)
1. Franchise Tax Board Suspension; Cure Period and Good Standing. (a) Disclosure. Consultant acknowledges that, as of the date of this Agreement, Consultant's status with the California Franchise Tax Board ("FTB") is suspended and Consultant is not in good standing with the FTB. Consultant has represented to City that resolution of the suspension is imminent.
(b) Cure Period. Consultant shall resolve the FTB suspension and deliver to City evidence, satisfactory to City in its sole discretion, that Consultant has been restored to active status and good standing with the FTB no later than ninety (90) days after the date this Agreement is fully executed by the Parties ("Cure Period"). Such evidence shall include, at a minimum, a current Entity Status Letter issued by the FTB, a Certificate of Revivor (if one is issued), and a current record from the California Secretary of State showing Consultant's status as active.
(c) Work During Cure Period. Consultant may begin work during the Cure Period upon receipt of a written notice to proceed in accordance with Section 3.3, provided that Consultant has first satisfied the insurance requirements of Article 5. Consultant's right to continue performing work after the Cure Period is expressly conditioned upon City's receipt and acceptance of the evidence required by subsection (b). If Consultant does not provide the required evidence within the Cure Period, Consultant shall immediately stop all work upon expiration of the Cure Period, and City shall have no obligation to pay for any work performed or costs incurred by Consultant after that date until City has received and accepted such evidence and has authorized Consultant in writing to resume work. In addition, City may, in its sole discretion, terminate this Agreement upon written notice to Consultant, effective immediately, without any liability to Consultant other than payment for work satisfactorily performed during the Cure Period, and without the opportunity to cure provided in Section 7.3.
(d) Continuing Obligation. Consultant represents and warrants that, once restored to good standing and throughout the remainder of the Term, it shall remain in good standing with both the FTB and the California Secretary of State. Consultant shall notify City in writing within five (5) business days if its status with either agency becomes suspended, forfeited, or otherwise inactive. In that event, City may immediately suspend the work in accordance with Section 7.2, withhold payment until Consultant's good standing is restored, and/or treat the suspension or forfeiture as a default under Section 7.3. (e) Basis for Condition. Consultant acknowledges that this condition is a material inducement to City entering into this Agreement, and that City is permitting Consultant to begin work during the Cure Period in reliance on Consultant's representation that resolution of the FTB suspension is imminent. Under the California Revenue and Taxation Code, an 272
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entity suspended by the FTB may lack the capacity to enter into, perform, or enforce contracts, and contracts made during a suspension may be voidable. Consultant agrees that its indemnification and insurance obligations under Article 5 of this Agreement apply in full to all work performed during the Cure Period, and that upon restoration of its good standing Consultant ratifies and confirms this Agreement, including all such obligations, as of the date of full execution.
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EXHIBIT C
SCHEDULE OF COMPENSATION
I. Consultant will be compensated for Services provided under this Agreement in accordance with the schedule in Consultant’s Proposal and detailed below.
II. City will compensate Consultant for the Services performed upon submission of a valid invoice, as described in Section 2.2.
III. The total compensation for the Services shall not exceed the Contract Sum, as provided in Section 2.1 of this Agreement.
274
EXHIBIT D
SCHEDULE OF PERFORMANCE
I. Consultant shall perform all Services and deliver all work products timely in accordance with the schedule described in Consultant’s Proposal and detailed below:
275
CITY OF PERRIS
CITY COUNCIL
AGENDA SUBMITTAL
10.F
BACKGROUND/DISCUSSION:
MEETING DATE: October 13, 2026
SUBJECT: Consideration to adopt Proposed Resolution Number (next in order) regarding authorization to execute and submit applications and related documents to the California Governor's Office of Emergency Services (CAL OES) for federal funding opportunities under the Infrastructure Investment and Jobs Act of 2021.
REQUESTED ACTION: That the City Council adopt purposed Resolution No. (next in order) approving an update to established authorized agents of the City of Perris regarding CAL OES applications and release of federal funds.
CONTACT: Ernie Reyna, Assistant City Manager
The City previously approved Resolution No. 6559 on December 10, 2024, authorizing the addition of City Manager, Assistant City Manager, Director of Development Services, Building Official/Fire Marshall to serve as agents on behalf of the City in filling out applications and requesting the release of funds for federal assistance from California's Office of Emergency Services (CAL OES).
To meet the funding agency's grant requirements, the Governing Body Resolution must be revised periodically. These revisions should clearly state the authorized signees, the funding agency's name, the specific grant(s) being sought, and the fiscal years the grant performance periods will cover. The Resolution has been updated to include the years of authorization (FY 2026, 2027 & 2028) with the CAL OES State and Local Cybersecurity Grant Program (SLCGP) as the specific grand funding agency and grants applied for by the City of Perris. Lastly, this revision expands the list of authorized agents for the City of Perris. The Director of Finance, IT Manager and IT Supervisor will be added to the existing list of authorized agents.
RECOMMENDATION
Staff recommend that the City Council adopt the updated resolution, approving an update to the City of Perris’s established authorized agents regarding CAL OES applications and the release of federal assistance funds.
276
BUDGET (or FISCAL) IMPACT:
There is no fiscal impact with this action.
Prepared By: Paul Lopez, IT Supervisor
Attachments:
1. RESOLUTION SLCGP GRANT (1).docx
277
ATTACHMENT 1
Resolution to Update Authorized Agents for SLCGP Grant
278
RESOLUTION NUMBER XXXX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
PERRIS, CALIFORNIA, TO PROVIDE AND ESTABLISH
UPDATED AUTHORIZED AGENTS OF THE CITY OF
PERRIS FOR REQUESTING RELEASE OF FUNDS FOR
FEDERAL ASSISTANCE FROM CALIFORNIA’S OFFICE OF
EMERGENCY SERVICES (CAL OES).
WHEREAS, the City Council of the City of Perris has the authority to request the release of funds from the California’s Office of Emergency Services; and WHEREAS, the City Council desires to delegate signature authority to designated staff members to streamline the application process for such assistance or relief; and WHEREAS, the City Council of the City of Perris adopted Resolution No. 6559 on December 10, 2024, designating and authorizing certain City officials to execute said applications and documents to streamline the application process for such assistance or relief; and WHEREAS, the California Governor’s Office of Emergency Services requires that the Perris City Council update Resolution No. 6559 in order to be eligible to receive federal financial assistance provided by the Federal Emergency Management Agency (FEMA) and the federal Cybersecurity and Infrastructure Security Agency (CISA); and WHEREAS, the City of Perris desires to participate in the Federal Fiscal Year 2024 (FFY24) State and Local Cybersecurity Grant Program (SLCGP) for grant years 2026, 2027, and 2028.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PERRIS
DOES HEREBY RESOLVE AS FOLLOWS:
Section 1. Recitals Incorporated. The above recitals are all true and correct and incorporated herein by this reference.
Section 2. Approval Authority for SLCGP. The City Manager, Assistant City Manager, Director of Finance, Information Technology Manager, and Information Technology Supervisor are authorized to sign and file applications and other necessary documents with the California’s Office of Emergency Services for the purpose of obtaining financial assistance through the the Federal Fiscal Year 2024 (FFY24) State and Local Cybersecurity Grant Program (SLCGP) for grant years 2026, 2027, and 2028.
Section 3. Authorization Period. This authorization shall be in effect for the duration of the FY 2026, FY 2027, and FY 2028 grant periods associated with the State and Local Cybersecurity Grant Program.
279
Section 4. Severability. The City Council declares that should any provision, section, paragraph, sentence, or word of this Resolution be rendered or declared invalid by any court of competent jurisdiction, or by reason of any preemptive legislation, the remaining provisions, sections, paragraphs, sentences, and words of this Resolution shall remain in full force and effect.
Section 5. Certification. The City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original Resolutions.
Section 6. Effective Date. This Resolution shall be effective immediately upon its adoption.
ADOPTED, SIGNED and APPROVED this 13th day of October, 2026. ____________________________________
Mayor, Michael M. Vargas
ATTEST:
___________________________________
City Clerk, Nancy Salazar
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) §
CITY OF PERRIS )
I, Nancy Salazar, CITY CLERK OF THE CITY OF PERRIS, CALIFORNIA, DO HEREBY CERTIFY that the foregoing Resolution Number XXXX was duly and regularly adopted by the City Council of the City of Perris at a regular meeting thereof held the 13th day of October, 2026, and that it was so adopted by the following called vote:
AYES: (Clerk’s Office will enter the vote)
NOES:
ABSTAIN:
ABSENT:
____________________________________
City Clerk, Nancy Salazar
280
Attachment A – Signature Authority Form 2020
AS THE Mayor
(Secretary/Director/President/Chancellor/Chairperson)
OF THE City of Perris
(Name of the Organization)
I, Michael Vargas, hereby authorize the following individual(s) to execute on behalf of the City of Perris, any actions necessary for the purpose of obtaining federal financial assistance provided by the federal Department of Homeland Security and subgranted through the California Governor’s Office of Emergency Services.
Clara Miramontes (City Manager) OR Wendell Bugtai (Assistant City Manager) OR Matthew Schenk (Director of Finance) OR Paul Lopez (Information Technology Supervisor) Signed and approved this 13th day of October, 2026.
(Signature)
281
CITY OF PERRIS
CITY COUNCIL
AGENDA SUBMITTAL
10.G
BACKGROUND/DISCUSSION:
MEETING DATE: October 13, 2026
SUBJECT: Consideration to approve an Employee Travel Policy Including on a Per Diem Basis for Meals. (This item was continued from the September 29, 2026 City Council Meeting).
REQUESTED ACTION: That the City Council Approve the Employee Travel Policy Including on a Per Diem Basis for Meals.
CONTACT: Ernie Reyna, Assistant City Manager
This item is being continued from the September 29, 2026 City Council meeting. On August 26, 2025, the City Council adopted a revised City Council Travel Policy that shifted meal reimbursement for City Council Members to a per diem basis, using the meals and incidental expenses (M&IE) rates published on the U.S. General Services Administration (GSA) website.
Staff have since prepared an Employee Travel and Expense Reimbursement Policy (Attachment 1) that applies a similar per diem approach to City employees traveling on official City business. The policy applies to all City of Perris employees; travel and expense reimbursement for City Council Members and members of City Council-created Boards or Commissions continues to be governed separately under the City Council and Elected Officials Travel Policy. The policy is intended to establish an “accountable plan” for expense reimbursement consistent with Internal Revenue Service regulations, so that properly substantiated reimbursements are not treated as taxable income to the employee.
Consistent with the revised City Council Travel Policy approved in August 2025, meals for City employees would be reimbursed via check on a per diem basis, without receipts, using the M&IE rates published on the GSA website at https://www.gsa.gov/travel/plan-book/per-diem-rates (or a successor link created by the GSA intended to contain substantially the same information). The first and last calendar day of travel would be paid at 75% of the daily per diem rate, and the per diem otherwise payable would be reduced when a meal is provided to the employee at no direct cost.
Section 5.1 of the proposed policy addresses deductions for provided or employee-paid meals, consistent with the approach discussed during the Council’s review of the parallel Council Travel Policy. Under this section, when a meal is provided to an employee at no direct cost—such as through a 282
BUDGET (or FISCAL) IMPACT:
conference or seminar registration, a hotel or event sponsor, or payment by the City—the per diem for that day would be reduced by the amount allocated to that meal under the GSA’s M&IE breakdown. A continental breakfast, reception with light hors d’oeuvres, or similar refreshment that does not constitute a full meal would not result in a reduction. Employees would notify the Finance Department of any provided or employee-paid meals so the per diem payment can be adjusted accordingly, helping avoid duplicate reimbursement.
Section 5.3 of the proposed policy gives employees the option to check out a City credit card through the Finance Department prior to travel, to be used for meals and incidental expenses in lieu of a per diem payment. When using a City credit card, the employee would be required to follow the meal guidelines published on the GSA website and keep all charges within the designated GSA amounts for the destination, including the 75% rate for the first and last calendar day of travel and any reduction for provided meals. A per diem payment would not be issued for any day on which the card is used for meals, and any charges above the GSA amounts, or for items not reimbursable under the policy such as alcoholic beverages, would be the employee’s responsibility to repay. The employee would return the card to the Finance Department, along with itemized receipts for all charges, as part of the required expense report. This option provides an alternative for employees who prefer not to pay meal costs out of pocket, while keeping spending within the same federal limits.
Staff also reviewed how neighboring cities and other agencies reimburse employees for meals and travel (Attachment 2). Of the agencies surveyed with a confirmed employee policy, the majority — including the State of California, Moreno Valley, Murrieta, and Banning — use a flat daily meal amount tied to a published federal or GSA rate table, consistent with the approach proposed in the attached policy. A smaller number of cities, including Corona and Eastvale, require receipts for meal expenses at actual cost rather than using a flat per diem amount.
RECOMMENDATION
It is recommended that the City Council approve the Employee Travel and Expense Reimbursement Policy.
No direct impact to the General Fund is anticipated as a result of adopting this policy. Travel-related expenditure continues to be budgeted within each department's existing operating budget, and actual reimbursement costs will vary based on approved employee's travel.
Prepared By: Ernie Reyna, Assistant City Manager
Attachments:
1 - Employee Travel Policy.docx
2. Neighboring Cities Comparison.pdf
3. GSA Website.pdf
283
ATTACHMENT 1
EMPLOYEE TRAVEL POLICY
284
City of Perris
Administrative Policy
POLICY: EMPLOYEE TRAVEL AND EXPENSE REIMBURSEMENT POLICY ADOPTED: [Pending City Council Approval] REVISED: 10/13/2026
APPLICABILITY
This policy applies to all City of Perris employees. It does not apply to members of the City Council or of any Board or Commission created by act of the City Council; travel and expense reimbursement for those individuals is governed by the City Council and Elected Officials Travel Policy.
FINDINGS
Whereas, the City of Perris takes its stewardship over the use of its public resources seriously.
Whereas, public resources should only be used when there is a substantial benefit to the City of Perris.
Whereas, such benefits include:
1. Attending educational seminars, conferences, and training designed to improve an employee's skill and information level in the performance of their duties;
2. Participating in regional, state, and national organizations whose activities affect the City of Perris;
3. Representing the City at meetings, hearings, and other functions related to City business; and
4. Conducting City business efficiently and economically while away from the employee's regular workplace.
Whereas, this policy is intended to establish an “accountable plan” for expense reimbursement consistent with Internal Revenue Service regulations, so that properly substantiated reimbursements are not treated as taxable income to the employee.
1. Authorized Expenses
Authorized attendance at conferences, meetings, trainings, or seminars, or authorized travel for any other purpose in connection with official City responsibilities. Business travel includes day trips and trips requiring one or more overnight stays in connection with official City business in order to:
a. Communicate with representatives of regional, state, and national government on City-adopted policy positions.
b. Attend training schools, seminars, symposia, conferences, hearings, conventions, or other meetings related to the employee's job duties.
c. Participate in local, regional, state, and national organizations whose activities affect the City's interests. d. Represent the City at meetings, ceremonial events, or legal proceedings. e. Attend City events.
f. Other meetings or activities as required to further the City's interests, when approved in advance as set forth in Section 2 below.
Examples of personal expenses that the City of Perris will not reimburse include, but are not limited to:
285
1. The personal portion of any trip;
2. Political or charitable contributions or events;
3. Alcoholic beverages;
4. Family expenses, including a spouse or partner's expenses when accompanying an employee on Cityrelated business, as well as children- or pet-related expenses;
5. Entertainment expenses, including theater, movies (either in-room or at the theater), sporting events (including gym, massage, and/or golf-related expenses), or other cultural events;
6. Non-mileage personal automobile expenses, including repairs, traffic citations, insurance, or gasoline; and
7. Personal losses incurred while on City of Perris business.
2. Approval and Authorization
2.1. Employees must obtain approval from their Department Head prior to incurring any travel expenses.
2.2. Overnight travel requires advance approval by the employee's Department Head. Overnight travel by a Department Head requires approval by the City Manager or designee.
2.3. Out-of-state or international travel, and any trip with expenses reasonably anticipated to exceed $1,000, requires advance approval by the City Manager or designee.
2.4. Employees may not authorize reimbursement of their own expenses.
3. Transportation
The most economical mode and class of transportation reasonably consistent with safety, scheduling needs, and cargo space requirements, and other applicable considerations, must be used, via the most direct and timeefficient route. Government and group rates must be used when available and appropriate.
3.1. Airfare: The lowest reasonably available main cabin airfare rate, or equivalent thereto, is presumed to be the most economical and reasonable for purposes of reimbursement, except when other considerations (safety, accessibility, etc.) reasonably justify other arrangements.
3.2. Automobile: Personal automobile mileage is reimbursed at Internal Revenue Service rates presently in effect, calculated from the employee's regular workplace to the business destination, or from the employee's residence if the employee travels directly from home, whichever results in the lesser mileage. Mileage reimbursement does not include parking or bridge and road tolls, which may also be reimbursable. Valet parking is reimbursable if the rates are reasonably comparable to self-parking, or if self-parking is not available.
3.3. Car Rental: Car rentals, and fuel related thereto, may be reimbursable when other means of ground transportation are not reasonably available, or if the car rental rate is more economical than other means of ground transportation (e.g., two or more employees are sharing a car rental).
3.4. Other Reimbursable Transportation Expense: Taxis, shuttle, transit, hired vehicle, tolls, and app-based ride share fares may be reimbursed, including up to a 20 percent gratuity per fare, when the cost of such fares is equal to or less than the cost of car rental, gasoline, and parking combined, or when such transportation is reasonable for time/travel-efficiency.
4. Lodging
Lodging expenses will be reimbursed or paid for, at the single-occupancy rate, when travel on official City business reasonably requires an overnight stay.
286
4.1. Conferences/Meetings: If such lodging is in connection with a conference, lodging expenses must not exceed the group rate published by the conference sponsor for the meeting, if such rates are available at the time of booking. If the group rate is not available, lodging accommodation comparable to the lodging provided in connection with the conference, which does not substantially increase costs or interfere with an employee's duties, is presumed to be reasonable and hence reimbursable for purposes of this policy.
4.2. Other Lodging: Hotel reservations should be made in advance in order to secure government rates. If government rates are not available, lodging accommodation (including hotels, motels, residence rental, etc.) in an area that is safe and provides reasonable transportation access to conduct the City's business is presumed to be reasonable and hence reimbursable for purposes of this policy.
5. Meals
Meal expenses shall be paid on a per diem basis, without receipts, either in advance or after the trip, based on per diem rates found on the U.S. General Services Administration's website at https://www.gsa.gov/travel/planbook/per-diem-rates (or a successor link created by the GSA intended to contain substantially the same information). Per diem for the first and last calendar day of travel shall be paid at 75% of the daily per diem rate.
Per diem is provided to cover meals and incidentals. Incidentals include fees and tips given to porters, baggage carriers, and hotel staff. Per diem rates are set at the levels prescribed by the United States Government and rates vary by destination city.
5.1. Deduction for Provided or Employee-Paid Meals: If a meal is provided to an employee at no direct cost — including a meal included in a conference or seminar registration fee, a complimentary meal provided by a hotel or event sponsor, or a meal paid for by the City on the employee's behalf — the per diem otherwise payable for that day shall be reduced by the amount allocated to that meal under the GSA's Meals and Incidental Expenses (M&IE) breakdown for the applicable per diem locality. A continental breakfast, reception with light hors d'oeuvres, or similar refreshment that does not constitute a full meal shall not result in a reduction. Employees shall promptly notify the Finance Department of any provided or employee-paid meals so that the per diem payment may be adjusted accordingly.
5.2. Meals Not Associated with Overnight Travel: For day trips not requiring an overnight stay, per diem is not provided. Meals are reimbursed only when the meal is an integral, scheduled part of a conference, training, or meeting program (for example, a working lunch), and are not reimbursed if the employee could reasonably provide his or her own meal in the ordinary course of the workday.
5.3. Use of City Credit Card for Per Diem: In lieu of receiving a per diem payment, an employee may check out a City credit card through the Finance Department prior to travel for use toward meals and incidental expenses.
When a City credit card is used for this purpose, the employee must follow the meal guidelines published on the U.S. General Services Administration’s website referenced in Section 5 and must keep all charges within the designated GSA amounts for the destination, including the 75% rate for the first and last calendar day of travel and any reduction for provided meals under Section 5.1. A per diem payment will not be issued for any day on which the City credit card is used for meals. Charges that exceed the GSA amounts, or that are for items not reimbursable under this policy, such as alcoholic beverages, are the responsibility of the employee and must be repaid to the City. Notwithstanding Section 8.2, the employee must return the credit card to the Finance Department, along with itemized receipts for all charges, as part of the expense report required under Section 8.
6. Internet
Employees may be reimbursed for reasonable internet access connection and/or usage fees away from home, if such access is necessary for City-related business.
7. Airport Parking
287
The most economical and reasonable parking option should generally be used. Long-term parking should be used for travel exceeding 24 hours, except when other considerations (safety, accessibility, etc.) reasonably justify other parking arrangements.
8. Expense Reporting
8.1. Employees must submit a completed expense report, with all required receipts attached, within ten (10) working days of returning from travel.
8.2. Receipts are not required for per diem meal reimbursement. Original, itemized receipts are required for all other reimbursable expenses, including lodging, transportation, registration fees, and any advance reconciliation.
8.3. No reimbursement will be made for an expense that is not properly documented in accordance with this policy.
9. Other
9.1. Registration fees and applicable materials related to, for example, attendance at a conference, if paid directly by the employee, are reimbursable.
9.2. Tipping is considered an appropriate expense, not to exceed 20 percent; the amount must be reasonable and for appropriate services such as food servers, taxi, or rideshare, or other appropriate attendants. Per diem for incidentals includes fees and tips given to porters, baggage carriers, and hotel staff.
9.3. Baggage handling fees for up to one piece of luggage per employee will be reimbursed.
COMPLIANCE WITH LAWS
Employees should keep in mind that some expenditures may be subject to reporting under the Political Reform Act and other laws. Generally, agency expenditures are public records subject to disclosure under the California Public Records Act.
VIOLATION OF THIS POLICY
Use of public resources or falsifying expense reports in violation of this policy may result in any or all of the following: (1) loss of reimbursement privileges; (2) a demand for restitution to the City; (3) the City's reporting the expenses as income to the employee to state and federal tax authorities; (4) disciplinary action, up to and including termination of employment; and (5) prosecution for misuse of public resources. 288
ATTACHMENT 2
NEIGHBORING CITIES COMPARISON
289
City / Agency How It Works Typical Daily Meal Amount Receipts Needed? Policy Last Updated
Federal Government (GSA) Flat daily amount, no receipts needed for meals ~$68/day (varies by city) No (meals) / Yes (hotel) 2026 State of California Flat daily amount, no receipts needed for meals $68/day ($51 first & last day) No (meals) / Yes (hotel) 2026 Moreno Valley Flat daily amount for meals; receipts for everything else Set by federal rate table No (meals) / Yes (other costs) 2026 Riverside Employee's choice: flat daily amount OR actual receipted cost
$64/day (or up to $85 w/
receipts)
No (if flat amount) / Yes (if
receipted) 2018
Norco Employee's choice: flat daily amount OR actual
receipted cost $64–$74/day (varies by city) No (if flat amount) / Yes (if receipted) 2017 Murrieta Flat daily amount for overnight trips only; receipts for day trips Set by federal rate table No (overnight) / Yes (day trips) 2019 Banning Flat daily amount for meals; receipts for
everything else Set by federal rate table No (meals) / Yes (other costs) 2020 Hemet Cash advance for meals, reconciled with receipts
after the trip
$70/day (big city) or $50/day
(other) Yes (to reconcile advance) Not dated
Corona Actual cost only, no flat daily amount Not published Yes (all expenses) Not dated Eastvale Actual cost only, capped at a flat daily ceiling $60/day maximum (all meals combined) Yes (all expenses) 2014
Canyon Lake
Employee's choice: flat daily amount OR actual
receipted cost (per diem NOT available to elected
officials)
Set by federal rate table No (if flat amount) / Yes (if receipted) 2024
Menifee, Lake Elsinore,
Temecula, San Jacinto,
Beaumont, and Wildomar
Not located — — —
Key: Blue = national/state benchmark Green = confirmed city policy Orange = not located A quick-reference comparison for Perris City Council — employee policies only How Nearby Cities Handle Employee Meal & Travel Reimbursement Three things worth knowing:
2. A few cities (Corona, Eastvale) require a receipt for every meal instead of a flat daily amount — generally more paperwork for staff, but ties reimbursement to actual cost.
1. Most cities give employees a flat daily meal amount (no receipts needed) tied to the federal government's published rate — this is the most common approach. 290
City / Agency Reimbursement Approach Daily Rate / Cap First & Last Day Rule Receipts Required? Source & Date GSA Federal Per
Diem (benchmark) Flat daily meal amount, no receipts required ~$68/day; varies by destination city 75% of daily rate on first & last day No (meals) / Yes (lodging) GSA.gov, 2026 State of California
(CalHR) Flat daily meal amount, no receipts required $68/day; $51/day first & last day 75% of daily rate on first & last day No (meals) / Yes (lodging) CalHR Manual §2203, 2026 Moreno Valley Flat daily meal amount (no receipts); all other costs reimbursed with receipts
Federal rate table for
destination city
Tiered by hours traveled: 50% (<12 hrs),
75% (12–24 hrs), 100% full days / 75%
first & last day
No (meals) / Yes
(everything else)
AP #3.03, revised June
2026
Riverside Employee's choice: flat daily meal amount OR
actual cost with receipts (can't mix on one trip)
$64/day flat, or up to $85/day
if receipted Reduced for partial days (no fixed %) No (if flat) / Yes (if receipted, or lodging) Policy 04.001.00, last
updated 2018
Norco Employee's choice: flat daily meal amount OR
actual cost with receipts
$64–$74/day depending on
destination city 75% of daily rate on first & last day No (if flat) / Yes (if receipted, or lodging) Policy 303, revised 2017 Murrieta
Flat daily meal amount for overnight trips only (24+
hrs); day trips reimbursed with receipts, capped at
the flat amount
Federal rate table for
destination city Follows federal partial-day rules No (overnight) / Yes (day trips, lodging) Policy 100.01, amended
2019
Banning Flat daily meal amount; all other costs reimbursed with receipts
Federal rate table for
destination city
Time-based: breakfast if leaving 1+ hr
early, dinner if returning 2+ hrs late (no %
formula)
No (meals) / Yes
(everything else) Policy E-3, adopted 2020
Hemet Cash advance for meals based on destination type, reconciled with receipts after the trip
$70/day (major metro/resort
cities) or $50/day (all other
areas)
Reduced for partial days (no fixed %) Yes (to reconcile the advance)
Personnel Rules Art.
XXIV; date not shown
Corona Actual cost only — no flat daily amount; capped at the lesser of actual cost or IRS rate
Not published in documents
reviewed Not specified in documents reviewed Yes (all expenses) Policy 01200.001; date not shown Eastvale Actual cost only, capped at a flat daily ceiling (not tied to federal rates)
$60/day maximum, all meals
combined Reduced for partial days (no fixed %) Yes (all expenses) Policies A-04 & A-05, 2011 / 2014 Canyon Lake
Employee's choice: flat per diem (federal rate
method) OR actual cost with receipts for meals
$20+. Per diem is NOT available to elected officials
— they must use actual cost only
Per diem based on IRS
federal rate method (high-low
or regular); no set dollar table
in document provided
Not specified in document provided
No (if per diem) / Yes
(actual-cost meals $20+,
and all other expenses)
Resolution No. 2024-21,
adopted June 2024
Menifee Not yet located Not yet located Not yet located Not yet located Not yet located Lake Elsinore Not yet located Not yet located Not yet located Not yet located Not yet located Temecula Not yet located Not yet located Not yet located Not yet located Not yet located San Jacinto Not yet located Not yet located Not yet located Not yet located Not yet located Beaumont Not yet located Not yet located Not yet located Not yet located Not yet located Wildomar (only an
elected-official
policy was located)
Not yet located Not yet located Not yet located Not yet located Not yet located Detailed Policy Comparison — Employee Policies Only
291
ATTACHMENT 3
GSA WEBSITE
292
U.S. General Services
Administration
An official website of the United States government
Per diem rates
We establish the per diem rates that federal agencies use to reimburse their employees for lodging and meals and incidental expenses incurred while on official travel within the continental United States. A standard rate applies to most of CONUS.
Individual rates apply to about 300 non-standard areas. Most NSAs are a key city/primary destination and the surrounding county.
Rates for the coming federal government fiscal year are typically announced in mid-August. Search the rates below or refer to the flat files, API , or trip calculator.
Search by city, state, or ZIP code
Required fields are marked with an asterisk ( * ).
For fiscal year: *
2026 (Current federal fiscal year)
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For fiscal year:
FY 2027 per diem rates now available
The FY 2027 rates are not the default rate in the drop-down box until October 1, 2026.
OR
9/17/26, 3:46 PM Per diem rates | GSA
https://www.gsa.gov/travel/plan-book/per-diem-rates 1/3 293
City Pair Program
Our Best-in-Class program procures discounted, flexible air passenger transportation services for federal government travelers across over 17,000 markets. It offers benefits like fully refundable tickets, no change fees, stable pricing, and no blackout dates, ensuring efficient and cost-effective official travel.
Bulletins
Download bulletins on per diem rates, privately owned vehicle reimbursement, relocation allowances and other travel topics. 2026 (Current federal fiscal year)
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Visit the DOD site >
Visit the Department of State site >
The Department of
State sets foreign rates.
The Department of Defense sets rates for
Alaska, Hawaii, and U.S. territories and possessions.
FL
TX
NM
AZ
AK
CA
NV
UT
CO
OR
WA
ID
HI
OK
MT
WY
ND
SD
NE
KS
MN
IA
MO
AR
LA
MS
AL
GA
SC
IL
WI
MI
IN
OH
TN
KY
NC
WV
VA
PA
NY
ME
VT NH
RI
CT
NJ
DE
MD
MA
DC
Visit the DOD site >
Visit the Department of State site >
The Department of
State sets foreign rates.
The Department of Defense sets rates for
Alaska, Hawaii, and U.S. territories and possessions.
9/17/26, 3:46 PM Per diem rates | GSA
https://www.gsa.gov/travel/plan-book/per-diem-rates 2/3 294
Need a state tax exemption form?
Per OMB Circular A-123, federal travelers “…must provide a tax exemption certificate to lodging vendors, when applicable, to exclude state and local taxes from their hotel bills.” GSA’s SmartPay team maintains the most current state tax information , including any applicable forms.
9/17/26, 3:46 PM Per diem rates | GSA
https://www.gsa.gov/travel/plan-book/per-diem-rates 3/3 295
CITY OF PERRIS
CITY COUNCIL
AGENDA SUBMITTAL
10.H
BACKGROUND/DISCUSSION:
MEETING DATE: October 13, 2026
SUBJECT: Consideration to approve a Revised City Council Travel Policy Including on a Per Diem Basis for Meals. (This item was continued from the September 29, 2026 City Council Meeting).
REQUESTED ACTION: That the City Council approve the revised City Council Travel Policy.
CONTACT: Ernie Reyna, Assistant City Manager
This item is being continued from the September 29, 2026, City Council meeting. On August 26, 2025, the City Council adopted a revised City Council and Elected Officials Travel Policy that moved meal reimbursement to a per diem basis using the U.S. General Services Administration’s (GSA) published rates. Shortly after, staff began drafting a companion Employee Travel and Expense Reimbursement Policy applying that same per diem approach to City employees.
While developing the Employee Travel and Expense Reimbursement Policy, staff identified two provisions included in the employee policy that were not yet reflected in the Council Policy. This item would align the two policies on those provisions and add a new option to allow City credit cards to be used for meals. The proposed revisions are shown in the redlined policy, included as Attachment 1.
The first is new Section 1.3.1, Deduction for Provided or Official-Paid Meals. Under this section, if a meal is already covered at no cost to the Official — for example, a meal included in a conference registration fee, a complimentary meal from a hotel or event sponsor, or a meal the City paid for directly — the per diem otherwise payable for that day is reduced by the amount GSA allocates to that meal in its Meals and Incidental Expenses (M&IE) breakdown. Light refreshments, such as a continental breakfast or a reception with hors d’oeuvres, do not trigger a reduction. Officials are required to promptly notify the Finance Department of any provided or Official-paid meals so the per diem payment can be adjusted. This mirrors Section 5.1 of the Employee Policy and is intended to prevent an Official from receiving a full day’s per diem on top of a meal the City, a sponsor, or a conference has already covered.
The second revision is to Section 1.1.2, Automobile. The policy is revised so that mileage is calculated from the Official’s regular workplace to the business destination, or from the Official’s residence if the 296
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Official travels directly from home, whichever results in the lesser mileage. This lesser-of-mileage approach mirrors Section 3.2 of the Employee Policy and is a more precise standard than the current policy language, which reimburses mileage to and from the Official’s residence without regard to which starting point results in a shorter trip.
The third revision is new Section 1.3.2, Use of City Credit Card for Per Diem, which is also being added to the Employee Policy as Section 5.3. Under this section, an Official may check out a City credit card through the Finance Department prior to travel, to be used for meals and incidental expenses in lieu of a per diem payment. When using a City credit card, the Official would be required to follow the meal guidelines published on the GSA website and keep all charges within the designated GSA amounts for the destination, including the 75% rate for the first and last calendar day of travel and any reduction for provided meals under Section 1.3.1. A per diem payment would not be issued for any day on which the card is used for meals, and any charges above the GSA amounts, or for items not reimbursable under the policy such as alcoholic beverages, would be the Official’s responsibility to repay. The Official would return the card to the Finance Department, along with itemized receipts for all charges, within ten (10) working days of returning from travel. This option provides an alternative for Officials who prefer not to pay meal costs out of pocket, while keeping spending within the same federal limits.
RECOMMENDATION
It is recommended that the City Council approve the revised City Council and Elected Officials Travel Policy.
No impact to the General Fund is anticipated as a result of these revisions, as this is an administrative policy clarification.
Prepared By: Ernie Reyna, Assistant City Manager
Attachments:
1. City Council and Elected Officials Travel Policy - Redline.docx 297
City of Perris
Administrative Policy
POLICY: CITY COUNCIL AND ELECTED OFFICIALS TRAVEL
POLICY
ADOPTED: 2/14/06, REVISED: 9/25/18, REVISED: 08/26/25,
REVISED: 10/13/2026
APPLICABILITY
This policy applies to the City Council and members of any other Board or Commission created by act of the City Council.
FINDINGS
Whereas, the City of Perris takes its stewardship over the use of its public resources seriously.
Whereas public resources should only be used when there is a substantial benefit to the City of Perris.
Whereas, such benefits include:
1. The opportunity to discuss the community’s concerns with state and federal officials:
2. Participating in regional, state, and national organizations whose activities affect the City of Perris;
3. Attending educational seminars designed to improve official’s skill and information levels; and
4. Promoting public service and morale by recognizing such service.
Whereas, this policy satisfies the requirements of Government Code sections 53232.2 and 53232.3. These Government Code sections were created by Assembly Bill 1234-2006 (AB 1234) and state that such a reimbursement policy may specify what constitutes reasonable rates for travel, lodging, and other expenses. If a policy does not specify reimbursement rates, then the reimbursable rates default to those in the Internal Revenue Service guidelines.
1. Authorized Expenses
Authorized attendance at conferences, meetings, and seminars or authorized travel for any other purpose in connection with official City responsibilities. Business travel includes day trips and trips requiring one or more overnight stays in connection with official representation of the City in order to:
a. Communicate with representatives of regional, state and national government on City adopted policy positions.
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b. Attend training schools, seminars, symposia, conferences, hearings, conventions or other meetings
c. Participate in local, regional, state, and national organizations whose activities affect the City’s interest.
d. Recognize service to the City (for example, thanking a longtime employee with a retirement gift or celebration of nominal value and cost). e. Attend City events.
f. Implement a City approved strategy for attracting or retaining businesses to the City, which will typically involve at least one staff member. g. Other meetings as required to further the City’s interests.
Examples of personal expenses that the City of Perris will not reimburse include, but are not limited to:
1. The personal portion of any trip:
2. Political or charitable contributions or events:
3. Alcoholic beverages
4. Family expenses, including partner’s expenses when accompanying officials on agencyrelated business, as well as children or pet-related expenses;
5. Entertainment expenses, including theater, movies (either in-room or at the theater), sporting events (including gym, massage and/or golf related expenses), or other cultural events;
6. Non-mileage personal automobile expenses, including repairs, traffic citations, insurance or gasoline; and
7. Personal loss incurred while on City of Perris business.
1.1 Transportation
The most economical mode and class of transportation reasonably consistent with safety, scheduling needs, and cargo space requirements, and other applicable considerations, must be used, via the most direct and time-efficient route. Government and group rates must be used when available and appropriate.
1.1.1. Airfare: The lowest reasonably available main cabin airfare rates, or equivalent thereto, are presumed to be the most economical and reasonable for purposes of reimbursement, except when other considerations (safety, accessibility, etc.) reasonably justify other arrangements.
1.1.2. Automobile: Personal automobile mileage is reimbursed at Internal Revenue Service rates presently in effect, calculated from the Official’s regular workplace to the business 299
destination, or from the Official’s residence if the Official travels directly from home, whichever results in the lesser mileage. The mileage reimbursement does not include parking or bridge and road tolls, which may also be reimbursable. Valet parking is reimbursable if the rates are reasonably comparable to self-parking or if self-parking is not available.
1.1.3 Car Rental: Car rentals, and fuel related thereto, may be reimbursable when other means of ground transportation are not reasonably available or if the car rental rates are more economical than other means of ground transpiration (e.g. two (2) or more travelers are sharing a car rental(s).
1.1.4.Other Reimbursable Transportation Expense: Taxis, shuttle, transit, hired vehicle, tolls and app-based ride share fares may be reimbursed, including up to a 20 percent gratuity per fare, when the cost of such fares is equal to or less than the cost of car rentals, gasoline and parking combined, or when such transportation is reasonable for time/travel-efficiency.
1.2. Lodging
Lodging expenses will be reimbursed or paid for when travel on official City business reasonably requires an overnight stay.
1.2.1. Conferences/Meetings: If such lodging is in connection with a conference, lodging expenses must not exceed the group rate published by the conference sponsor for the meeting if such rates are available at the time of booking. If the group rate is not available, lodging accommodation comparable to the lodging provided in connection with a conference, which does not substantially increase costs or interfere with an Official’s duties, are presumed to be reasonable and hence reimbursable for purpose of this policy.
1.2.2. Other Lodging: Hotel reservations should be made in advance in order to secure government rates. If government rates are not available, lodging accommodation (including hotels, motels, residence rental, etc.) in an area that is safe and provides reasonable transportation access to conduct the City’s business are presumed to be reasonable and hence reimbursable for purposes of this policy.
1.3. Meals
Meal expenses shall be paid on a per diem basis, without receipts, either in advance or after the trip, based on per diem rates found on the U.S. General Services Administration’s website at https://www.gsa.gov/travel/plan-book/per-diem-rates (or a successor link created by the GSA intended to contain substantially the same information). Per Diem for the first and last calendar day of travel shall be paid at 75% of the daily per diem rate. Per diem is provided to cover meals and incidentals. Incidentals include fees and tips given to porters, baggage carriers, and hotel staff. Per diem rates are set at the levels prescribed by the United States Government and rates vary by destination City.
1.3.1. Deduction for Provided or Official-Paid Meals: If a meal is provided to an Official at no direct cost — including a meal included in a conference or seminar registration fee, a complimentary meal provided by a hotel or event sponsor, or a meal paid for by the City on the Official’s behalf — the per diem otherwise payable for that day shall be reduced by the amount allocated to that meal under the GSA’s Meals and Incidental Expenses (M&IE) breakdown for the applicable per diem locality. A continental breakfast, reception with light hors d’oeuvres, or similar refreshment that does not constitute a full meal shall not result in a reduction. Officials shall promptly notify the Finance Department of any provided or Official-paid meals so that the 300
per diem payment may be adjusted accordingly.
1.3.2. Use of City Credit Card for Per Diem: In lieu of receiving a per diem payment, an Official may check out a City credit card through the Finance Department prior to travel for use toward meals and incidental expenses. When a City credit card is used for this purpose, the Official must follow the meal guidelines published on the U.S. General Services Administration’s website referenced in Section 1.3 and must keep all charges within the designated GSA amounts for the destination, including the 75% rate for the first and last calendar day of travel and any reduction for provided meals under Section 1.3.1. A per diem payment will not be issued for any day on which the City credit card is used for meals. Charges that exceed the GSA amounts, or that are for items not reimbursable under this policy, such as alcoholic beverages, are the responsibility of the Official and must be repaid to the City. The Official must return the credit card to the Finance Department, along with itemized receipts for all charges, within ten (10) working days of returning from travel.
1.4 Internet
Officials may be reimbursed for reasonable internet access connection and/or usage fees away from home, if such access is necessary for City-related business.
1.5. Airport Parking
The most economical and reasonable parking option should generally be used. Longterm parking should be used for travel exceeding 24 hours, except when other considerations (safety, accessibility, etc.) reasonably justify other parking arrangements.
1.6. Other
1.6.1. Registration fees and applicable materials related to, for example, attendance at a conference, if paid directly the Official, are reimbursable.
1.6.2. Tipping is considered an appropriate expense, not to exceed 20%; however, the amount must be reasonable and for appropriate services such as food servers, taxi, or rideshare, or other appropriate attendants. Per diem for incidentals includes fees and tips given to porters, baggage carriers, and hotel staff.
1.6.3. Baggage handling fees for up to one piece of luggage per Elected Official will be reimbursed.
COMPLIANCE WITH LAWS
City Officials should keep in mind that some expenditures may be subject to reporting under the Political Reform Act and other laws. Generally, agency expenditures are public records subject to disclosure under the Public Records Act.
VIOLATION OF THIS POLICY
Use of public resources or falsifying expense reports in violation of this policy may result in any or all of the following: (1) loss of reimbursement privileges; (2) a demand for restitution to the City; (3) the agency’s reporting the expenses as income to the Official to state and federal 301
tax authorities; and (4) prosecution for misuse of public resources. 302
CITY OF PERRIS
CITY COUNCIL
AGENDA SUBMITTAL
10.I
BACKGROUND/DISCUSSION:
MEETING DATE: October 13, 2026
SUBJECT: Consideration to Approve a Professional Services Agreement between the City of Perris and CG Resources Management and Engineering, Inc. for National Pollutant Discharge Elimination System Assistance and Water Quality Management Program Review and Inspection Services in the amount not to exceed $70,000.00 for a three (3) year contract term.
REQUESTED ACTION:
That the City Council:
1. Approve a Professional Services Agreement between the City of Perris and CG Resources Management and Engineering, Inc. for National Pollutant Discharge Elimination System Assistance and Water Quality Management Program Review and Inspection
Services in the amount not to exceed $70,000.00 for a three (3) year contract term; and
2. Authorize the City Manager to execute the Agreement, approved as to form by City Attorney.
CONTACT: John Pourkazemi, City Engineer
Compliance with the National Pollutant Discharge Elimination System (NPDES) and Water Quality Management Program (WQMP) are essential to the City of Perris’s private development and Capital Improvement Program projects. Both NPDES and WQMP are complex and specialized fields and CG Resources Management and Engineering, Inc. as an established, qualified and recognized professional in the State of California on water quality provisions, has satisfactorily provided NPDES assistance and WQMP review and inspection services for the City of Perris’ Engineering Department, Development Services Department and Public Works Department since 2013.
Staff has determined that it is in the City's best interest to engage CG Resources Management and Engineering, Inc. for these services. CG Resources Management and Engineering, Inc. has the technical expertise required to support the City's water quality provision needs. Staff has developed a strong and effective working relationship with CG Resources Management and Engineering, Inc. who is well 303
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acquainted with the City's operational needs and procedures. Given this background, staff recommend awarding the contract to CG Resources Management and Engineering, Inc.
On October 10, 2023, City Council approved a Professional Services Agreement between City of Perris and CG Resources Management and Engineering, Inc. in an amount not to exceed $68,150.00 for a three (3) year contract term.
This request is for a new three (3) year Professional Services Agreement in the amount not to exceed $70,000.00. The rate per hour for the services is $165.00 for years 2026 and 2027 and $170.00 for year 2028 (3% increase).
The contract amount will be offset by private development fees and the budgeted Capital Improvement Program funds.
Staff recommends that the City Council 1) Approve a Professional Services Agreement between the City of Perris and CG Resources Management and Engineering, Inc. for National Pollutant Discharge Elimination System Assistance and Water Quality Management Program Review and Inspection Services in the amount not to exceed $70,000.00 for a three (3) year contract term; and 2) Authorize the City Manager to execute the Agreement, approved as to form by City Attorney.
There is no impact to the General Fund. The cost of the services will be attained through land development project fees and the Capital Improvement Program funds.
Prepared By: Enrique Najera, Managers Assistant
Attachments:
1. - Professional Services Agreement between the City of Perris and CG Resources Management and Engineering, Inc.
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ATTACHMENT 1
PROFESSIONAL SERVICES AGREEMENT
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AGREEMENT FOR PROFESSIONAL SERVICES
BETWEEN CITY OF PERRIS AND
CG RESOURCE MANAGEMENT AND ENGINEERING, INC.
THIS AGREEMENT FOR PROFESSIONAL SERVICES (“Agreement”) is made and entered into this 10th day of October, 2026 by and between CITY OF PERRIS, a California municipal corporation (“City”) and CG RESOURCE MANAGEMENT AND ENGINEERING INC., a California corporation (“Consultant”). City and Consultant may be referred to individually as “Party” or collectively as “Parties.”
RECITALS
A. Pursuant to the Perris Municipal Code, City has the authority to enter into and execute this Agreement.
B. The Parties desire to formalize the selection of Consultant for performance of those services defined and described particularly in this Agreement and desire that the terms of that performance be as particularly defined and described herein.
OPERATIVE PROVISIONS
NOW, THEREFORE, in consideration of the mutual promises and covenants made by the Parties and contained herein and other consideration, the value and adequacy of which are hereby acknowledged, the Parties agree as follows:
ARTICLE 1. SERVICES OF CONSULTANT
1.1 Scope of Services. In compliance with all terms and conditions of this Agreement, Consultant shall provide those services specified in the “Scope of Services” attached hereto as Exhibit A and incorporated herein by this reference, which may be referred to herein as the “services” or “work” hereunder. As a material inducement to City entering into this Agreement, Consultant represents and warrants: a) all services set forth in the Scope of Services will be performed in a competent and satisfactory manner; b) all materials used for services will be both of good quality as well as fit for the purpose intended; and, c) Consultant shall follow the highest professional standards and practices in performing the services required hereunder.
1.2 Consultant’s Proposal. The Scope of Services shall include the scope of services or work included in Consultant’s proposal or bid, which shall be incorporated herein by this reference as though fully set forth herein. In the event of any inconsistency between the terms of such proposal or bid, and this Agreement, the terms of this Agreement shall govern. No other terms and conditions from Consultant’s proposal or bid, other than description of scope of services or work, shall apply to this Agreement, unless specifically agreed to by City in writing.
1.3 Compliance with Law. All services rendered hereunder shall be provided in accordance with all ordinances, resolutions, statutes, rules and regulations of City and any federal, State or local governmental agency having jurisdiction in effect at the time services are rendered. 306
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City, and its officers, employees and agents, shall not be liable at law or in equity for failure of Consultant to comply with this Section.
1.4 Licenses, Permits, Fees and Assessments. Consultant shall obtain at its sole cost and expense such licenses, permits and approvals as may be required by law for the performance of the services required by this Agreement. Consultant shall have the sole obligation to pay for any fees, assessments and taxes, plus applicable penalties and interest, which may be imposed by law and arise from or are necessary for Consultant’s performance of the services required by this Agreement, and shall indemnify, defend and hold harmless City against any such fees, assessments, taxes, penalties or interest levied, assessed or imposed against City hereunder.
1.5 Additional Services and Compensation. City shall have the right at any time during the performance of the services, without invalidating this Agreement, to order extra work beyond that specified in the Scope of Services or make changes to the work by altering, adding to or deducting from said work. No such extra work may be undertaken unless a written order, consistent with both Section 9.4 as well as the Perris Municipal Code (“PMC”), is first given by City to Consultant, incorporating therein any adjustment in the Contract Sum for the actual costs of the extra work and/or the time to perform this Agreement, which said adjustments are subject to the written approval of Consultant. Any increase in the Contract Sum of up to ten percent (10%) of the Contract Sum or $40,000, whichever is less, may be approved by the City Manager pursuant to Section 9.4. Any greater increases, taken either separately or cumulatively, must be approved by the City Council. It is expressly understood by Consultant that the provisions of this Section shall not apply to services specifically set forth in the Scope of Services or reasonably contemplated therein. Consultant hereby acknowledges that it accepts the risk that the services to be provided pursuant to the Scope of Services may be more costly or time consuming than Consultant anticipates and that Consultant shall not be entitled to additional compensation therefor.
City may in its sole and absolute discretion have similar work done by other consultants.
1.6 Familiarity with Work. By executing this Agreement, Consultant represents and warrants Consultant: a) has thoroughly investigated and considered services to be performed, b) has carefully considered how services should be performed, and c) fully understands the facilities, difficulties and restrictions attending performance of services under this Agreement.
1.7 Software and Computer Services. If the Scope of Services includes the provision and/or installation of any software, computer system, or other computer technology, Consultant represents and warrants that it is familiar with and/or has inspected City’s current infrastructure, equipment, computer system and software and that the software, computer system, or other computer technology provided and/or installed by Consultant under this Agreement is compatible, and shall be fully functional, with such infrastructure, equipment, computer system and software of City. Consultant acknowledges that City is relying on this representation by Consultant as a material consideration in entering into this Agreement.
1.8 Prevailing Wages. If services include any “public work” or “maintenance work,” as those terms are defined in California Labor Code section 1720 et seq. and California Code of Regulations, Title 8, section 16000 et seq., and if the total compensation is $1,000 or more, 307
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Consultant shall pay prevailing wages for such work and comply with the requirements in California Labor Code section 1770 et seq. and 1810 et seq., and all other applicable laws.
1.9 Special Requirements. Additional terms and conditions of this Agreement, if any, which are made a part hereof are set forth in the “Special Requirements” attached hereto as Exhibit B and incorporated herein by this reference. In the event of a conflict between the provisions of Exhibit B and any other provisions of this Agreement, the provisions of Exhibit B shall govern.
ARTICLE 2. COMPENSATION AND METHOD OF PAYMENT
2.1 Contract Sum. Subject to any limitations set forth in this Agreement, City agrees to pay Consultant the amounts specified in the “Schedule of Compensation” attached hereto as Exhibit C and incorporated herein by this reference. The total compensation, including reimbursement for actual expenses, shall not exceed Seventy Thousand Dollars and Zero Cents ($70,000.00) (“Contract Sum”), unless additional compensation is approved pursuant to Section
1.5. Compensation may include reimbursement, for actual and necessary expenditures, if both specified in the Schedule of Compensation, as well as approved by City in advance. The Contract Sum shall include the attendance of Consultant at all project meetings reasonably deemed necessary by City. Consultant agrees that if Consultant becomes aware of any facts, circumstances, techniques, or events that may or will materially increase or decrease the cost of the work or services, Consultant shall promptly notify the Contract Officer of said fact, circumstance, technique or event and the estimated increased or decreased cost related thereto.
2.2 Invoices. Unless some other method of payment is specified in Exhibit C, Schedule of Compensation, in any month in which Consultant wishes to receive payment, no later than the first business day of such month, Consultant shall submit to City, in a form approved by City’s Finance Director, an invoice for services rendered prior to the date of the invoice. By submitting an invoice for payment under this Agreement, Consultant is certifying compliance with all provisions of this Agreement. Except as provided in Sections 7.3, 7.4 and 7.5, City shall pay Consultant for all expenses stated thereon which are approved by City pursuant to this Agreement generally within thirty (30) days, and City will use its best efforts to make payment no later than forty-five (45) days, from the submission of an invoice in an approved form. In the event any charges or expenses are disputed by City, the original invoice shall be returned by City to Consultant for correction and resubmission. Review and payment by City for any invoice provided by Consultant shall not constitute a waiver of any rights or remedies provided herein or any applicable law. Each invoice is to include (unless otherwise specified by City): 1) line items for all personnel describing the work performed, the number of hours worked, and the hourly rate; 2) line items for all materials and equipment properly charged to the Services; 3) line items for all other approved reimbursable expenses claimed, with supporting documentation; and 4) line items for all approved subcontractor labor, supplies, equipment, materials, and travel properly charged to the Services.
ARTICLE 3. PERFORMANCE SCHEDULE
3.1 Time of Essence. Time is of the essence in the performance of this Agreement.
3.2 Term. Unless earlier terminated in accordance with Article 7 of this Agreement, this Agreement shall continue in full force and effect until completion of the services, which shall 308
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be no later than October 9, 2029 (“Term”).
3.3 Schedule of Performance. Consultant shall commence the services pursuant to this Agreement upon receipt of a written notice to proceed and shall perform all services within the time period(s) established in the “Schedule of Performance” attached hereto as Exhibit D and incorporated herein by this reference. Such time period(s) may be increased by the Contract Officer, provided that such increases shall not serve to extend the Term.
3.4 Force Majeure. The time period(s) specified in the Schedule of Performance for performance of the services rendered pursuant to this Agreement shall be extended because of any delays due to unforeseeable causes beyond the control and without the fault or negligence of Consultant, including, but not restricted to, acts of God or of the public enemy, unusually severe weather, fires, earthquakes, floods, epidemics, quarantine restrictions, riots, strikes, freight embargoes, wars, litigation, and/or acts of any governmental agency, including City, if Consultant shall within ten (10) days of the commencement of such delay notify City in writing of the causes of the delay. City shall ascertain the facts and the extent of delay, and extend the time for performing the services for the period of the enforced delay when and if in the judgment of City such delay is justified. City’s determination shall be final and conclusive upon the Parties to this Agreement. In no event shall Consultant be entitled to recover damages against City for any delay in the performance of this Agreement, however caused, Consultant’s sole remedy being extension of this Agreement pursuant to this Section.
ARTICLE 4. COORDINATION OF WORK
4.1 Representative of Consultant. The representative of Consultant is Cynthia Gabaldon, P.E., CPSWQ, CPESC, QSD/P, QISP, ToR, President, 909-455-8520 [email protected], who is authorized to act on Consultant’s behalf with respect to the work or services specified herein and to make all decisions in connection therewith. It is expressly understood that the experience, knowledge, capability and reputation of the representative was a substantial inducement for City to enter into this Agreement. Therefore, the representative shall be responsible during the term of this Agreement for directing all activities of Consultant and devoting sufficient time to personally supervise the services hereunder. For purposes of this Agreement, the representative may not be replaced nor may their responsibilities be substantially reduced by Consultant without the express written approval of City.
4.2 Contract Officer for City. The Contract Officer for City is John Pourkazemi, PE, City Engineer, 951-956-2120, [email protected] (or such person as may be designated by the City Manager). The Contract Officer shall be the primary person on behalf of City responsible for the administration of the Agreement. It shall be Consultant’s responsibility to assure that the Contract Officer is kept informed of both the progress of the performance of the services as well as any decisions which must be made by City.
4.3 Approvals from City. City approvals or actions, pursuant to the authority of this Agreement, are to be made (unless otherwise specified) either by the City Manager or by their delegate as provided for in writing.
4.4 Independent Contractor. Neither City, nor any of its officers, employees or agents, shall have any control over the manner or means by which Consultant, or its officers, 309
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employees, agents or subcontractors, perform the services required herein, except as otherwise set forth herein. Consultant shall perform all services required herein as an independent contractor of City and shall remain under only such obligations as are consistent with that role. Consultant shall not at any time or in any manner represent that it, or any of its officers, employees, agents or subcontractors, are officers, employees or agents of City. City shall not in any way or for any purpose become or be deemed to be a partner of Consultant in its business or otherwise or a joint venturer or a member of any joint enterprise with Consultant. Consultant shall not incur or have the power to incur any debt, obligation or liability whatever against City, or bind City in any manner. Consultant represents and warrants that the personnel used to provide services to City pursuant to this Agreement shall at all times be under Consultant’s exclusive control and direction.
No City employee benefits shall be available to Consultant, its officers, employees, agents or subcontractors, in connection with the performance of this Agreement. City shall not be liable for compensation or indemnification to Consultant, its officers, employees, agents or subcontractors, for injury or sickness arising out of performing services hereunder. In the event that Consultant or any officer, employee, agent, or subcontractor of Consultant providing services under this Agreement claims or is determined by a federal or state agency, a court of competent jurisdiction, or the California Public Employees’ Retirement System, to be classified as other than an independent contractor for City, then Consultant shall indemnify, defend, and hold harmless City for the payment of any and all assessed fines, penalties, judgments, employee and/or employer contributions, and any other damages and costs assessed to City as a consequence of, or in any way attributable to, the assertion that Consultant, or any officer, employee, agent, or subcontractor Consultant used to provide services under this Agreement, is/are employees of City.
4.5 Subcontracting or Assignment. The experience, knowledge, capability and reputation of Consultant, its principals and employees were a substantial inducement for City to enter into this Agreement. Therefore, without express written approval of City, Consultant shall not contract with any other entity to perform in whole or in part services required hereunder without express written approval of City, and neither this Agreement nor any interest herein may be transferred or assigned. No approved transfer shall release Consultant, or any surety or insured of Consultant, of any liability hereunder without express written consent of City.
ARTICLE 5. INSURANCE AND INDEMNIFICATION
5.1 Insurance Coverages. Prior to commencement of any services under this Agreement, and without limiting Consultant’s indemnification obligation to City, Consultant shall procure and maintain, at its sole cost and expense, in a form and content satisfactory to City, for the duration of the Agreement, primary policies of insurance of the type and amounts below, issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance or is on the List of Approved Surplus Line Insurers in the State of California, with an assigned policyholders’ Rating of A- (or higher) and Financial Size Category Class VII (or larger) in accordance with the latest edition of Best’s Key Rating Guide, unless otherwise approved by City, which shall cover all elected and appointed officers, employees and agents of City. City reserves the right at any time during the term of the Agreement to change the amounts and types of insurance required by giving Consultant ninety (90) days advance written notice of such change.
If such change results in substantial additional cost to Consultant, City and Consultant may renegotiate Consultant’s compensation.
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(a) Commercial General Liability Insurance. A policy of commercial general liability insurance, with coverage at least as broad as Insurance Services Office (“ISO”) form CG 00 01, written on a per occurrence basis for bodily injury, personal injury and property damage. Defense costs must be paid in addition to limits. Coverage for an additional insured shall not be limited to its vicarious liability. The policy must include contractual liability that has not been amended. Any endorsement restricting standard ISO “insured contract” language will not be accepted. Limits shall be no less than $2,000,000 per occurrence for all covered losses and no less than $4,000,000 general aggregate.
(b) Worker’s Compensation Insurance. A policy of worker’s compensation insurance in such amount as will fully comply with the laws of the State of California and which shall indemnify, insure and provide legal defense for Consultant against any loss, claim or damage arising from any injuries or occupational diseases occurring to any worker employed by or any persons retained by Consultant in the course of carrying out the work or services contemplated in this Agreement.
(c) Automobile Liability. A policy of comprehensive automobile liability insurance, at least as broad as ISO form CA 00 01, written on a per occurrence basis covering bodily injury and property damage in an amount not less than $1,000,000 combined single limit for each accident. Said policy shall include coverage for owned, non-owned, leased, hired cars and any automobile.
(d) Professional Liability. Professional liability insurance appropriate to Consultant’s profession. This coverage may be written on a “claims made” basis and must include coverage for contractual liability. Any policy inception date, continuity date, or retroactive date must be before the effective date of this Agreement. The professional liability insurance required by this Agreement must be endorsed to be applicable to claims based upon, arising out of, or related to services performed under this Agreement. The insurance must be maintained for at least five (5) consecutive years following the completion of Consultant’s services or the termination of this Agreement. During this additional 5-year period, Consultant shall annually and upon request of City submit written evidence of this continuous coverage. Limits shall be no less than $2,000,000 per claim and no less than $4,000,000 general aggregate. (e) Cyber Liability. Reserved.
(f) Excess Liability Insurance. Excess liability insurance may be used to satisfy the obligations herein. If excess liability insurance is used then the policy shall meet all the requirements herein and be at least as broad as the primary coverages set forth herein. Such policy shall: 1) include a drop down feature requiring the policy to respond if primary insurance that would otherwise have applied proves to be uncollectible in whole or in part for any reason; 2) be payable on behalf of wording as opposed to reimbursement; 3) have concurrency of effective dates with primary policies; 4) “follow form” to the underlying primary policies; and, 5) provide insureds, under primary policies required herein, shall be insureds under the excess liability policy. (g) Subcontractors. In the event Consultant subcontracts any portion of the work in compliance with Section 4.5 of this Agreement, Consultant shall either: 1) include each subcontractor as insureds under its policies of insurance required herein; or, 2) Consultant shall furnish to City all documentation, required in Article 5 for Consultant, for each subcontractor. All 311
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coverages for subcontractors shall include all of the requirements stated herein.
5.2 General Insurance Requirements.
(a) Proof of Insurance, Enforcement and Notice. No work or services under this Agreement shall commence until both Consultant has provided City with insurance certificates, endorsement forms and appropriate insurance binders evidencing the above insurance coverages, as well as said documentation is approved by City. City reserves the right to inspect complete, certified copies of, and endorsements to, all required insurance policies, at any time.
Any failure to comply with the reporting or other provisions of the policies including breaches or warranties shall not affect coverage provided to City. In the event any insurance policy required under this Agreement is cancelled or amended (and the insurance policy is not replaced pursuant to subsection (b) below), or does not comply with Article 5, then: 1) City has the right but not the duty to obtain insurance required herein and any premium paid by City will be promptly reimbursed by Consultant or City will withhold amounts sufficient to pay premium from Consultant payments; or, 2) City, notwithstanding any other provisions of this Agreement, may immediately terminate this Agreement. Consultant shall give City prompt and timely notice of claims made or suits instituted that arise out of or result from Consultant’s performance under this Agreement, and that involve or may involve coverage under any of the required insurance policies. (b) Cancellation/Amendment. All of herein required policies of insurance shall provide the insurance may not be amended or cancelled by insurer or any Party hereto without providing thirty (30) calendar days prior written notice (with exception of ten (10) calendar days prior written notice for nonpayment) to City. In the event any of said policies of insurance are amended or cancelled, Consultant shall, five (5) business days prior to the cancellation date, submit new evidence of insurance in conformance with this Agreement to City. (c) Additional Insureds. The commercial general liability policy provided for in Section 5.1(a) and the automobile liability policy provided for in Section 5.1(c) both shall name City and its elected and appointed officers, employees and agents (“City Parties”) as additional insureds and such coverage shall contain no special limitations on the scope of protection afforded to City and City Parties. A severability of interests provision must apply for all additional insureds ensuring that Consultant’s insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer’s liability, and policies of insurance shall not contain any cross-liability exclusions. (d) Primary, Subrogation, Contribution and Coverage. All of the above policies of insurance shall be primary insurance. The insurers for the above policies, Consultant and any subcontractors are all deemed hereof to waive all rights of subrogation and contribution they may have against City or City Parties, and their respective insurers, and all insurance policies required herein shall be endorsed to waive such rights. Any insurance maintained by City or City Parties will apply in excess of, and not contribute with, Consultant’s insurance. If Consultant maintains broader coverage and/or higher limits than the minimum amounts provided herein, City requires and shall be entitled to the broader coverage and/or higher limits maintained by Consultant. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to City and City Parties. None of the coverages required herein will be in compliance with this Agreement if they include any limiting endorsement of any 312
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kind that has not been first submitted to City and approved of in writing. Requirements of specific coverage features or limits contained herein are not intended as a limitation on coverage, limits or other requirements, or a waiver of any coverage normally provided by any insurance. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue and is not intended by any Party or insured to be all inclusive, or to the exclusion of other coverage, or a waiver of any type.
(e) Limitations, Self- Insured Retention and Deductibles. Consultant agrees that requirements of Article 5 shall not be construed as limiting in any way the extent to which Consultant may be held responsible for the payment of damages to any persons or property resulting from Consultant’s activities or the activities of any person or persons for which Consultant is otherwise responsible nor shall it limit Consultant’s indemnification liabilities as provided in Section 5.3. All insurance policies must specify that where the primary insured does not satisfy any self-insured retention, any additional insured may satisfy the self-insured retention.
Any deductibles or self-insured retentions must be declared to and approved by City. At City’s option, either the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects City and City Parties, or Consultant shall procure a bond guaranteeing payment of losses and related investigations, claim administration, attorneys’ fees, defense expenses and claims.
5.3 Indemnification.
(a) General Obligations. Consultant agrees, to the full extent permitted by law, to indemnify, defend and hold harmless City and its elected and appointed officers, employees and agents (each an “Indemnitee” and collectively, “Indemnitees”) against, and will hold and save them and each of them harmless from, whether actual or threatened, any and all actions, either judicial, administrative, arbitration or regulatory claims, damages to persons or property, losses, costs, penalties, obligations, errors, omissions or liabilities (herein “Claims or Liabilities”) that may be asserted or claimed by any person, firm or entity arising out of or in connection with the negligent performance of the work, operations or activities provided herein of Consultant, its officers, employees, agents, subcontractors, or invitees, or any individual or entity for which Consultant is legally liable (each an “Indemnitor” and collectively, “Indemnitors”), or arising from Indemnitors’ reckless or willful misconduct, or arising from Indemnitors’ negligent performance of or failure to perform any term, provision, covenant or condition of this Agreement, and in connection therewith: 1) Consultant will defend any action or actions filed or threatened in connection with any such Claims or Liabilities, or at option of Indemnitee(s) will reimburse and pay for all costs and expenses, including legal costs and attorneys’ fees, incurred by Indemnitee(s) in connection therewith; and, 2) Consultant will promptly pay any judgment rendered against Indemnitee(s) for any such Claims or Liabilities, and will save and hold Indemnitee(s) harmless therefrom.
(b) Further Provisions. The indemnity obligation herein shall be binding on successors, assigns and heirs of Consultant and shall survive termination of this Agreement.
Consultant shall incorporate similar indemnity agreements as provided herein with its subcontractors, and if Consultant fails to do so Consultant shall be fully responsible to indemnify City hereunder therefor. Failure of City and/or City Parties (collectively “City” for solely this Section 5.3(b)) to monitor compliance with any of the indemnification provisions herein shall not be a waiver hereof. The indemnification provisions herein do not apply to claims or liabilities 313
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occurring as a result of City’s sole negligence or willful misconduct, but, to the fullest extent permitted by law, shall apply to claims and liabilities resulting in part from City’s negligence, except that design professionals’ indemnity hereunder shall be limited to claims and liabilities arising out of the negligence, recklessness or willful misconduct of the design professional. The indemnification provided herein includes Claims or Liabilities arising from any negligent or wrongful act, error or omission, or reckless or willful misconduct of Indemnitors in the performance of professional services hereunder. Payment of invoices by City is not a condition precedent to enforcement of the indemnity obligation herein. In the event of any dispute between Consultant and City, as to whether liability arises from the sole negligence or willful misconduct of City, Consultant will be obligated to pay for City’s defense until such time as a final judgment has been entered adjudicating City as solely negligent or responsible for willful misconduct.
Consultant will not be entitled in the absence of such a determination to any reimbursement of defense costs including but not limited to attorneys’ fees, expert fees and costs of litigation. (c) Professional Liability. When the law establishes a professional standard of care for Consultant’s services, to the fullest extent permitted by law, Consultant shall indemnify, defend and hold harmless Indemnitees against, and will hold and save them and each of them harmless from, whether actual or threatened, any and all Claims and Liabilities, consistent with all obligations provided for in this Section 5.3, to the extent same are caused in whole or in part by any negligent or wrongful act, error or omission, or reckless or willful misconduct of Indemnitors in the performance of professional services under this Agreement.
ARTICLE 6. RECORDS, REPORTS AND RELEASE OF INFORMATION
6.1 Records. Consultant shall keep, and require subcontractors to keep, such ledgers, books of accounts, invoices, vouchers, canceled checks, reports, studies or other documents relating to the disbursements charged to City and services performed hereunder (“books and records”) as shall be necessary to perform the services required by this Agreement and enable City to evaluate the performance of such services. Any and all such books and records shall be maintained in accordance with generally accepted accounting principles, shall be complete and detailed, and shall be readily accessible. City shall have full and free access to such books and records at all times during normal business hours of City, including the right to inspect, copy, audit and make records and transcripts. Such books and records shall be maintained for a period of three (3) years following completion of the services hereunder. City shall have access to such books and records in the event any audit is required. Consultant shall fully cooperate with City in providing access to any and all Consultant records and documents if a public records request is made and disclosure is required by law including but not limited to the California Public Records Act.
6.2 Ownership of Documents. All drawings, specifications, maps, designs, photographs, studies, surveys, data, notes, computer files, reports, records, documents and other materials (“documents and materials”) prepared by Consultant, its officers, employees, agents and subcontractors in the performance of this Agreement shall be the property of City and shall be delivered to City upon request of City and/or upon the termination of this Agreement, and Consultant shall have no claim for further employment or additional compensation as a result of the exercise by City of its full rights of ownership, use, reuse, or assignment of the documents and materials hereunder. Consultant may retain copies of such documents and materials for its own use. Consultant shall have the right to use the concepts embodied therein. All subcontractors shall 314
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provide for assignment to City of any documents and materials prepared by them, and in the event Consultant fails to secure such assignment, Consultant shall indemnify City for all damages resulting therefrom. Moreover, with respect to any Consultant documents and materials that may qualify as “works made for hire” as defined in 17 U.S.C. § 101, such documents and materials are hereby deemed “works made for hire” for City.
6.3 Confidentiality and Release of Information. All information gained or work product produced by Consultant in its performance of this Agreement shall be considered confidential, unless such information is in the public domain or already known to Consultant.
Consultant shall not release or disclose any such information or work product to persons or entities other than City without prior written authorization from City. Consultant, its officers, employees, agents or subcontractors, shall not, without prior written authorization from City or unless requested by the City Attorney, voluntarily provide documents, declarations, letters of support, testimony at depositions, response to interrogatories or other information concerning the work performed under this Agreement. Response to a subpoena or court order shall not be considered “voluntary” provided Consultant immediately gives City notice of such court order or subpoena.
If Consultant, or any officer, employee, agent or subcontractor of Consultant, provides any information or work product in violation of this Agreement, then City shall have the right to reimbursement and indemnity from Consultant for any damages, costs and fees, including attorneys’ fees, caused by or incurred as a result of Consultant’s conduct. As concerning, regarding or related to, in any way, this Agreement and the work performed thereunder: a) Consultant shall immediately notify City should Consultant, its officers, employees, agents or subcontractors be served with any summons, complaint, subpoena, notice of deposition, request for documents, interrogatories, request for admissions or other discovery request, court order or subpoena from any party; b) City retains the right, but has no obligation, to represent Consultant or be present at any deposition, hearing or similar proceeding; and, c) Consultant agrees to cooperate fully with City and to provide City with the opportunity to review any response to discovery requests provided by Consultant, however, this right to review any such response does not imply or mean the right by City to control, direct, or rewrite said response.
ARTICLE 7. ENFORCEMENT OF AGREEMENT AND TERMINATION
7.1 California Law. This Agreement shall be interpreted, construed and governed both as to validity and to performance of the Parties in accordance with the laws of the State of California. Legal actions concerning any dispute, claim or matter arising out of or in relation to this Agreement shall be instituted in the Superior Court of the County of Riverside, State of California, or any other appropriate court in such county, and Consultant agrees to submit to the personal jurisdiction of such court in the event of such action. In the event of litigation in a U.S.
District Court, venue shall lie exclusively in the Central District of California, in the County of Riverside, State of California.
7.2 Suspension, or Termination, Prior to Expiration of Term. This Section shall govern any termination of this Agreement except as specifically provided in Section 7.4 for termination for cause. City reserves the right to terminate or suspend this Agreement, or any portion hereof, at any time, for any reason, with or without cause, upon ten (10) days’ notice to Consultant, except that where termination or suspension is due to the fault of Consultant, the period of notice may be such shorter time as determined by City. Upon receipt of any notice of termination 315
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or suspension, Consultant shall immediately cease all services hereunder, unless the notice provides otherwise, or except such as specifically approved by City. Upon submittal of an invoice consistent with Section 2.2, Consultant shall be entitled to compensation for all services rendered prior to the effective date of the notice of termination or suspension and for any services authorized by City thereafter in accordance with the Schedule of Compensation, or such as may be approved by City, except as provided in Section 7.5. In event of termination, or suspension, without cause pursuant to this Section, there is no need to provide opportunity to cure pursuant to Section 7.3.
7.3 Default of Consultant and Opportunity to Cure. In the event that Consultant is in default under the terms of this Agreement, City shall not have any obligation or duty to continue compensating Consultant for any work performed after the date of default. Instead, City may give notice to Consultant of the default and the reasons for the default. The notice shall include the timeframe in which Consultant may cure the default. This timeframe is presumptively ten (10) days, but may be extended, or reduced, if circumstances warrant, as determined by City. During the period of time that Consultant is in default, City shall hold all invoices and shall, when the default is cured, proceed with payment on the invoices, without liability for interest. In the alternative, City may, in its sole discretion, elect to pay some or all of the outstanding invoices during the period of default. If Consultant does not cure the default by conclusion of noticed timeframe, City may immediately both terminate this Agreement with notice to Consultant as well as pursue the remedy in Section 7.4, without prejudice to any other remedy to which City may be entitled at law, in equity or under this Agreement. Any failure on the part of City to give notice of Consultant’s default shall not be deemed to result in a waiver of City’s legal rights or any rights arising out of any provision of this Agreement.
7.4 Termination for Default of Consultant. If termination is due to the failure of Consultant to fulfill its obligations under this Agreement, City may, after compliance with the provisions of Section 7.3, take over the work and prosecute the same to completion by contract or otherwise, and Consultant shall be liable to the extent that the total cost for completion of the services required hereunder exceeds the compensation herein stipulated (provided that City shall use reasonable efforts to mitigate such damages), and City may withhold any payments to Consultant for the purpose of set-off or partial payment of the amounts owed the City therefor.
7.5 Retention of Funds. Consultant hereby authorizes City to deduct from any amount payable to Consultant (whether or not arising out of this Agreement) (i) any amounts the payment of which may be in dispute hereunder or which are necessary to compensate City for any losses, costs, liabilities, or damages suffered by City, and (ii) all amounts for which City may be liable to third parties, by reason of Consultant’s acts or omissions in performing or failing to perform Consultant’s obligation under this Agreement. In the event that any claim is made by a third party, the amount or validity of which is disputed by Consultant, or any indebtedness shall exist which shall appear to be the basis for a claim of lien, City may withhold from any payment due, without liability for interest because of such withholding, an amount sufficient to cover such claim. The failure of City to exercise such right to deduct or to withhold shall not, however, affect the obligations of Consultant to insure, indemnify, and protect City as elsewhere provided herein.
7.6 Waiver. Waiver by any Party to this Agreement of any term, condition, or covenant of this Agreement shall not constitute a waiver of any other term, condition, or covenant. Waiver by any Party of any breach of the provisions of this Agreement shall not constitute a waiver of any 316
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other provision or a waiver of any subsequent breach or violation of any provision of this Agreement. Acceptance by City of any work or services by Consultant shall not constitute a waiver of any of the provisions of this Agreement. No delay or omission in the exercise of any right or remedy by a non-defaulting Party on any default shall impair such right or remedy or be construed as a waiver. Any waiver by either Party of any default must be in writing and shall not be a waiver of any other default concerning the same or any other provision of this Agreement. Consultant acknowledges and agrees that any actual or alleged failure on the part of City to inform Consultant of non-compliance with any requirement of this Agreement imposes no additional obligations on City nor does it waive any rights hereunder. Payment to Consultant for work performed pursuant to this Agreement shall not be deemed to waive any defects in work performed by Consultant.
7.7 Rights and Remedies are Cumulative. Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the Parties are cumulative and the exercise by either Party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other Party.
7.8 Legal Action. In addition to any other rights or remedies, either Party may take legal action, in law or in equity, to cure, correct or remedy any default, to recover damages for any default, to compel specific performance of this Agreement, to obtain declaratory or injunctive relief, or to obtain any other remedy consistent with the purposes of this Agreement.
Notwithstanding any contrary provision herein, Consultant shall file a statutory claim pursuant to Government Code sections 905 et seq. and 910 et seq., in order to pursue a legal action under this Agreement.
7.9 Attorneys’ Fees. If either Party to this Agreement is required to initiate or defend or made a party to any action or proceeding in any way connected with this Agreement, the prevailing party in such action or proceeding, in addition to any other relief which may be granted, whether legal or equitable, shall be entitled to reasonable attorneys’ fees. Attorneys’ fees shall include attorneys’ fees on any appeal, and a Party entitled to attorneys’ fees shall be entitled to all other reasonable costs for investigating such action, consultants’ fees, taking depositions and discovery and all other necessary costs the court allows which are incurred in such litigation. Such fees and costs shall be enforceable whether or not such action is prosecuted to judgment.
ARTICLE 8. INDIVIDUAL LIABILITY, CONFLICTS AND NON-DISCRIMINATION
8.1 Non-liability of City Officers and Employees. No officer or employee of City shall be personally liable to Consultant, or any successor in interest, in the event of any default or breach by City or for any amount which may become due to Consultant or to its successor, or for breach of any obligation of the terms of this Agreement.
8.2 Conflict of Interest. Consultant covenants that neither it, nor any officer or principal of its firm, has or shall acquire any interest, directly or indirectly, which would conflict in any manner with the interests of City or which would in any way hinder Consultant’s performance of services under this Agreement. Consultant further covenants that in the performance of this Agreement, no person having any such interest shall be employed by it as an officer, employee, agent or subcontractor without the express written consent of City. Consultant agrees to at all times avoid conflicts of interest or the appearance of any conflicts of interest with 317
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the interests of City in the performance of this Agreement. City, in its sole discretion, shall determine the existence of a conflict of interest and may terminate this Agreement in the event such a conflict of interest exists upon sending Consultant written notice describing the conflict.
No officer or employee of City shall have any financial interest, direct or indirect, in this Agreement nor shall any such officer or employee participate in any decision relating to this Agreement which affects their financial interest or the financial interest of any corporation, partnership or association in which they are, directly or indirectly, interested, in violation of any State statute or regulation. Consultant warrants that it has not paid or given and will not pay or give any third party any money or other consideration for obtaining this Agreement.
8.3 Covenant Against Discrimination. Consultant covenants that, by and for itself, its heirs, executors, assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of race, color, creed, religion, sex, gender, sexual orientation, marital status, national origin, ancestry or other protected class in the performance of this Agreement. Consultant shall take affirmative action to insure that applicants are employed and that employees are treated during employment without regard to their race, color, creed, religion, sex, gender, sexual orientation, marital status, national origin, ancestry or other protected class.
ARTICLE 9. MISCELLANEOUS PROVISIONS
9.1 Notices. Any notice or other communication either Party desires or is required to give to the other Party or any other person in regards to this Agreement must be in writing and may be given either by (i) personal service, (ii) delivery by a reputable document delivery service, such as but not limited to, Federal Express, which provides a receipt showing date and time of delivery, or (iii) mailing in the United States Mail, certified mail, postage prepaid, return receipt requested, in the case of City addressed to the Contract Officer at City of Perris, 101 N. “D” Street, Perris, CA 92570, and in the case of Consultant, to the person(s) at the address designated on the execution page of this Agreement. Either Party may change its address by notifying the other Party of the change of address in writing. Notice shall be deemed communicated at the time personally delivered or in seventy-two (72) hours from the time of mailing if mailed as provided in this Section.
9.2 Interpretation. The terms of this Agreement shall be construed in accordance with the meaning of the language used and shall not be construed for or against either Party by reason of the authorship of this Agreement, headings used, or any other rule of construction which might otherwise apply.
9.3 Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original, and such counterparts shall constitute one and the same instrument, whether the signatures are originals, electronic, or digital.
9.4 Integration; Amendment. This Agreement including the attachments hereto is the entire, complete and exclusive expression of the understanding of the Parties as to the Agreement.
It is understood that there are no oral agreements between the Parties hereto affecting this Agreement, and this Agreement supersedes and cancels any and all prior and contemporaneous negotiations, arrangements, agreements and understandings, if any, between the Parties, concerning this Agreement, and none shall be used to interpret this Agreement. No amendment to 318
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or modification of this Agreement shall be valid unless made in writing and approved by Consultant and by City, provided that City’s approval thereof shall only be valid if made in a manner consistent with the PMC.
9.5 Severability. Should a portion of this Agreement be declared invalid or unenforceable by a judgment or decree of a court of competent jurisdiction, such invalidity or unenforceability shall not affect any of the remaining portions of this Agreement which are hereby declared as severable and shall be interpreted to carry out the intent of the Parties unless the invalid provision is so material that its invalidity deprives either Party of the basic benefit of their bargain or renders this Agreement meaningless.
9.6 No Undue Influence. Consultant declares and warrants that no undue influence or pressure was used against or in concert with any officer or employee of City in connection with the award, terms or implementation of this Agreement, including any method of coercion, confidential financial arrangement, or financial inducement. No officer or employee of City has or will receive compensation, directly or indirectly, from Consultant, or from any officer, employee or agent of Consultant, in connection with the award of this Agreement or any work to be conducted as a result of this Agreement. Violation of this Section shall be a material breach of this Agreement entitling City to remedies in Section 7.4 and any and all remedies at law or equity.
9.7 Corporate Authority. The persons executing this Agreement on behalf of the Parties hereto warrant that (i) such Party is duly organized and existing, (ii) they are duly authorized to execute and deliver this Agreement on behalf of said Party, (iii) by so executing this Agreement, such Party is formally bound to the provisions of this Agreement, and (iv) entering into this Agreement does not violate any provision of any other agreement to which said Party is bound. This Agreement shall be binding upon the heirs, executors, administrators, successors and assigns of the Parties.
[SIGNATURES ON FOLLOWING PAGE]
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IN WITNESS WHEREOF, the Parties hereto have executed this Agreement on the date and year first-above written.
CITY:
CITY OF PERRIS, a California municipal
corporation
_____________________________________
Clara Miramontes
City Manager
ATTEST:
_____________________________________
Nancy Salazar, City Clerk
APPROVED AS TO FORM:
ALESHIRE & WYNDER, LLP
_____________________________________
Sunny K. Soltani, City Attorney
[pks; rjl]
CONSULTANT:
CG RESOURCE MANAGEMENT AND
ENGINEERING INC., a California
corporation
By: _________________________________
Name: Cynthia Gabaldon
Title: President
By: _________________________________
Name:
Title:
Address: 2105 Foothill Blvd., Ste. B-135
La Verne, CA 91750
Two corporate officer signatures required when Consultant is a corporation, with one signature required from each of the following groups: 1) Chairperson of the Board, President or any Vice President; and 2) Secretary, any Assistant Secretary, Chief Financial Officer or any Assistant Treasurer. (Cal. Corp. Code § 313.)
APPROPRIATE ATTESTATIONS SHALL BE INCLUDED AS MAY BE REQUIRED BY THE BYLAWS,
ARTICLES OF INCORPORATION, OR OTHER RULES OR REGULATIONS APPLICABLE TO CONSULTANT’S BUSINESS ENTITY.
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EXHIBIT A
SCOPE OF SERVICES
I. Consultant will perform services described in Consultant’s Proposal and as detailed below:
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323
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324
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325
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326
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327
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328
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329
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331
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II. All work product is subject to review and acceptance by City and must be revised by Consultant without additional charge to City until found satisfactory and accepted by City.
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EXHIBIT B
SPECIAL REQUIREMENTS
(Superseding Agreement Boilerplate)
Not Applicable
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EXHIBIT C
SCHEDULE OF COMPENSATION
I. Consultant will be compensated for Services provided under this Agreement in accordance with the fee schedule in Consultant’s Proposal further described in Exhibit A.
II. City will compensate Consultant for the Services performed upon submission of a valid invoice, as described in Section 2.2.
III. The total compensation for the Services shall not exceed the Contract Sum, as provided in Section 2.1 of this Agreement.
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EXHIBIT D
SCHEDULE OF PERFORMANCE
I. Consultant shall perform all services and deliver all work products timely in accordance with the schedule described in Consultant’s Proposal and as detailed below:
Start of Work anticipated on October 10, 2026 through Project Completion on October 9, 2029.
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CITY OF PERRIS
CITY COUNCIL
AGENDA SUBMITTAL
10.J
BACKGROUND/DISCUSSION:
MEETING DATE: October 13, 2026
SUBJECT: Consideration to Approve the Transportation Uniform Mitigation Fee Reimbursement Agreement in the amount of $3,735,601.00 between the City of Perris, City of Menifee, Western Riverside Council of Governments and Core 5 Industrial Partners, LLC. for construction of the Ethanac Road Improvements between I-215 Interchange and Sherman Road.
REQUESTED ACTION: That the City Council:
1. Approve the Transportation Uniform Mitigation Fee
Reimbursement Agreement in the amount of $3,735,601.00 between the City of Perris, City of Menifee, Western Riverside Council of Governments and Core 5 Industrial Partners, LLC. for construction of the Ethanac Road Improvements between I-215 Interchange and Sherman Road; and
2. Authorize the City Manager to execute the Agreement, approved as to form by City Attorney.
CONTACT: John Pourkazemi, City Engineer
Core 5 Industrial Partners, LLC. (Developer) is currently in various stages of developing three industrial buildings (Project), totaling approximately three and a half million square feet, located south of Ethanac Road between Trumble Road and Antelope Road.
The Developer was conditioned to widen Ethanac Road between I-215 and Antelope Road by Cities of Perris and Menifee. Sections of Ethanac Road border both cities with jurisdictional changes occurring through various segments. The entire Ethanac Road between I-215 and Trumble Road is within the City of Perris’ jurisdiction and the centerline of Ethanac Road splits the City of Perris and the City of Menifee jurisdictional boundaries between Trumble Road and Sherman Road. The segment of Ethanac Road between Sherman Road and Antelope Road falls fully within the City of Menifee’s jurisdiction.
This portion of Ethanac Road is part of the Western Riverside Council of Governments (WRCOG) Transportation Uniform Mitigation Fee (TUMF) network and the Developer is eligible to receive credit 337
BUDGET (or FISCAL) IMPACT:
toward the Project’s TUMF obligation for the cost incurred to construct the improvements and to receive TUMF credits for the Ethanac Road improvements, the Developer is requesting to enter into an Improvement and Credit/Reimbursement Agreement with the City of Perris, City of Menifee and WRCOG.
According to the TUMF schedule, the three industrial buildings associated with this Project are subject to an estimated overall TUMF obligation of $4,698,174.00. As determined by WRCOG, the maximum estimated cost of the TUMF related improvements along Ethanac Road between I-215 and Antelope Road that are eligible for credit is $8,433,776.00. Therefore, the Developer’s estimated potential reimbursement is $3,735,601.00.
Staff recommends that the City Council 1) Approve the Transportation Uniform Mitigation Fee Reimbursement Agreement in the amount of $3,735,601.00 between the City of Perris, City of Menifee, Western Riverside Council of Governments and Core 5 Industrial Partners, LLC. for construction of the Ethanac Road Improvements between I-215 Interchange and Sherman Road; and 2) Authorize the City Manager to execute the Agreement, approved as to form by City the Attorney.
No impact to the City’s General Fund. All TUMF collection, credit issuance, and reimbursements are processed through WRCOG as the TUMF Program administering agency. Review and approval of credit through WRCOG would be coordinated for future review with all parties to the Agreement, prior to issuance of any credit or reimbursement.
Prepared By: Enrique Najera, Managers Assistant
Attachments:
1. Vicinity Map.pdf
2. WRCOG TUMF Funding Agreement - Ethanac Rd. Imp..pdf
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ATTACHMENT 1
VICINITY MAP
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Vicinity Map
ETHANAC ROAD
SHERMAN ROAD
ANTELOPE ROAD ANTELOPE ROAD
SHERMAN ROAD
TRUMBLE ROAD TRUMBLE ROAD
LEGEND
City of Perris Jurisdiction
TUMF Improvements within City of Perris
TUMF Improvements within City of Menifee
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ATTACHMENT 2
WRCOG TUMF FUNDING AGREEMENT
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IMPROVEMENT AND CREDIT / REIMBURSEMENT AGREEMENT
TRANSPORTATION UNIFORM MITIGATION FEE PROGRAM
This IMPROVEMENT AND CREDIT AGREEMENT (“Agreement”) is entered into this ___ day of ___________________, 2026, (the “Effective Date”) by and between the City of Menifee a California municipal corporation (“MENIFEE”), and the City of Perris a California municipal corporation (“PERRIS” and together with MENIFEE referred to collectively as the “AGENCIES”), the Western Riverside Council of Governments, a joint powers Agency, (“WRCOG”), Core5 Industrial Partners, LLC, a Delaware limited liability company with its principal place of business at 300 Spectrum Center Drive, Suite 880, Irvine, CA 92618 (“DEVELOPER”). MENIFEE, PERRIS, and DEVELOPER are sometimes hereinafter referred to individually as “Party” and collectively as “Parties.”
RECITALS
WHEREAS, DEVELOPER owns 147.5 acres of real property located within the City of Menifee in the County of Riverside, California, which is more specifically described in the legal description set forth in Exhibit “A,” attached hereto and incorporated herein by this reference (“Property”); and
WHEREAS, DEVELOPER has requested from MENIFEE certain entitlements and/or permits for the construction of improvements on the Property, which are more particularly described as construction of Industrial Buildings within Tentative Parcel Map Nos. 38156, 38432, and 39292 (“Project”); and
WHEREAS, the MENIFEE is a member agency of WRCOG, a joint powers agency comprised of the County of Riverside and 18 cities located in Western Riverside County. WRCOG is the administrator for the Transportation Uniform Mitigation Fee (“TUMF”) Program; and WHEREAS, as part of the TUMF Program, the MENIFEE has adopted “Transportation Uniform Mitigation Fee Nexus Study: 2024 Update” (“2024 Nexus Study”); and WHEREAS, as a condition to MENIFEE’s approval of the Project, MENIFEE has required DEVELOPER to construct certain street and transportation system improvement(s) of regional importance (“TUMF Improvements”); and
WHEREAS, pursuant to the TUMF Program, the MENIFEE requires DEVELOPER to pay the TUMF which covers the DEVELOPER’S fair share of the costs to deliver those TUMF Improvements that help mitigate the Project’s traffic impacts and burdens on the Regional System of Highways and Arterials (also known as the “TUMF Network”), generated by the Project and that are necessary to protect the safety, health and welfare of persons that travel to and from the Project using the TUMF Network; and
WHEREAS, the TUMF Improvements have been designated as having Regional or Zonal Significance as further described in the 2024 Nexus Study and the 5 year Transportation Improvement Program as may be amended; and
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WHEREAS, the AGENCIES, WRCOG and DEVELOPER now desire to enter into this Agreement for the following purposes: (1) to provide for the timely delivery of the TUMF Improvements, (2) to ensure that delivery of the TUMF Improvements is undertaken as if the TUMF Improvements were constructed under the direction and authority of MENIFEE AND PERRIS, as applicable to improvements within each jurisdiction, (3) to provide a means by which the DEVELOPER’s costs for project delivery of the TUMF Improvements and related right-ofway is offset against DEVELOPER’s obligation to pay the applicable TUMF for the Project in accordance with the TUMF Administrative Plan adopted by WRCOG, and (4) to provide a means, subject to the separate approval of WRCOG, for DEVELOPER to be reimbursed to the extent the actual and authorized costs for the delivery of the TUMF Improvements exceeds DEVELOPER's TUMF obligation.
NOW, THEREFORE, for the purposes set forth herein, and for good and valuable consideration, the adequacy of which is hereby acknowledged, DEVELOPER and the AGENCIES hereby agree as follows:
TERMS
1.0 Incorporation of Recitals. The Parties hereby affirm the facts set forth in the Recitals above and agree to the incorporation of the Recitals as though fully set forth herein.
2.0 Construction of TUMF Improvements. DEVELOPER shall construct or have constructed at its own cost, expense, and liability certain street and transportation system improvements generally described as street and transportation system improvements generally described as the widening from 2 to 4 lanes on Ethanac Road from I-215 to Dawson Road, and as shown more specifically on the plans, profiles, and specifications which have been or will be prepared by or on behalf of DEVELOPER and approved by the AGENCIES, and which are incorporated herein by this reference (“TUMF Improvements”). Construction of the TUMF Improvements shall include any transitions and/or other incidental work deemed necessary for drainage or public safety.
DEVELOPER shall be responsible for the replacement, relocation, or removal of any component of any existing public or private improvement in conflict with the construction or installation of the TUMF Improvements. Such replacement, relocation, or removal shall be performed to the complete satisfaction of the AGENCIES and the owner of such improvement. DEVELOPER further promises and agrees to provide all equipment, tools, materials, labor, tests, design work, and engineering services necessary to fully and adequately complete the TUMF Improvements.
2.1 Pre-approval of Plans and Specifications. DEVELOPER is prohibited from commencing work on any portion of the TUMF Improvements until all plans and specifications for the TUMF Improvements have been submitted to and approved by the AGENCIES. Approval by the AGENCIES shall not relieve DEVELOPER from ensuring that all TUMF Improvements conform with all other requirements and standards set forth in this Agreement.
2.2 Permits and Notices. Prior to commencing any work, DEVELOPER shall, at its sole cost, expense, and liability, obtain all necessary permits and licenses and give all necessary and incidental notices required for the lawful construction of the TUMF Improvements and performance of DEVELOPER’S obligations under this Agreement. DEVELOPER shall conduct 343
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the work in full compliance with the regulations, rules, and other requirements contained in any permit or license issued to DEVELOPER.
2.3 Public Works Requirements. In order to insure that the TUMF Improvements will be constructed as if they had been constructed under the direction and supervision, or under the authority of, the AGENCIES, DEVELOPER shall comply with all of the following requirements with respect to the construction of the TUMF Improvements:
(a) DEVELOPER shall obtain bids for the construction of the TUMF Improvements, in conformance with the standard procedures and requirements of the AGENCIES with respect to their public works projects, or in a manner which is approved by the Public Works Department.
(b) The contract or contracts for the construction of the TUMF Improvements shall be awarded to the responsible bidder(s) submitting the lowest responsive bid(s) for the construction of the TUMF Improvements.
(c) DEVELOPER shall require, and the specifications and bid and contract documents shall require, all such contractors to pay prevailing wages (in accordance with Articles 1 and 2 of Chapter 1, Part 7, Division 2 of the Labor Code) and to otherwise comply with applicable provisions of the Labor Code, the Government Code and the Public Contract Code relating to public works projects of cities/counties and as required by the procedures and standards of the AGENCIES with respect to the construction of their public works projects or as otherwise directed by the Public Works Department.
(d) All such contractors shall be required to provide proof of insurance coverage throughout the term of the construction of the TUMF Improvements which they will construct in conformance with the AGENCIES’ standard procedures and requirements. (e) DEVELOPER and all such contractors shall comply with such other requirements relating to the construction of the TUMF Improvements which the AGENCIES may impose by written notification delivered to DEVELOPER and each such contractor at any time, either prior to the receipt of bids by DEVELOPER for the construction of the TUMF Improvements, or, to the extent required as a result of changes in applicable laws, during the progress of construction thereof.
DEVELOPER shall provide proof to the AGENCIES, at such intervals and in such form as the AGENCIES may require that the foregoing requirements have been satisfied as to the TUMF Improvements.
2.4 Quality of Work; Compliance With Laws and Codes. The construction plans and specifications for the TUMF Improvements shall be prepared in accordance with all applicable federal, state and local laws, ordinances, regulations, codes, standards, and other requirements.
The TUMF Improvements shall be completed in accordance with all approved maps, plans, specifications, standard drawings, and special amendments thereto on file with AGENCY, as well as all applicable federal, state, and local laws, ordinances, regulations, codes, standards, and other requirements applicable at the time work is actually commenced. 344
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2.5 Standard of Performance. DEVELOPER and its contractors, if any, shall perform all work required, constructing the TUMF Improvements in a skillful and workmanlike manner, and consistent with the standards generally recognized as being employed by professionals in the same discipline in the State of California. DEVELOPER represents and maintains that it or its contractors shall be skilled in the professional calling necessary to perform the work.
DEVELOPER warrants that all of its employees and contractors shall have sufficient skill and experience to perform the work assigned to them, and that they shall have all licenses, permits, qualifications and approvals of whatever nature that are legally required to perform the work, and that such licenses, permits, qualifications and approvals shall be maintained throughout the term of this Agreement.
2.6 Alterations to TUMF Improvements. All work shall be done and the TUMF Improvements completed as shown on approved plans and specifications, and any subsequent alterations thereto. If during the course of construction and installation it is determined that the public interest requires alterations in the TUMF Improvements, DEVELOPER shall undertake such design and construction changes as may be reasonably required by the AGENCIES. Any and all alterations in the plans and specifications and the TUMF Improvements to be completed may be accomplished without first giving prior notice thereof to DEVELOPER’s surety for this Agreement.
3.0 Maintenance of TUMF Improvements. The AGENCIES shall not be responsible or liable for the maintenance or care of the TUMF Improvements until MENIFEE or PERRIS approves and accepts them. The AGENCIES shall exercise no control over the TUMF Improvements until accepted. Any use by any person of the TUMF Improvements, or any portion thereof, shall be at the sole and exclusive risk of DEVELOPER at all times prior to MENIFEE or PERRIS’S acceptance of the TUMF Improvements. DEVELOPER shall maintain all of the TUMF Improvements in a state of good repair until they are completed by DEVELOPER and approved and accepted by the AGENCIES, and until the security for the performance of this Agreement is released. It shall be DEVELOPER’s responsibility to initiate all maintenance work, but if it shall fail to do so, it shall promptly perform such maintenance work when notified to do so by AGENCY. If DEVELOPER fails to properly prosecute its maintenance obligation under this section, the AGENCIES may do all work necessary for such maintenance and the cost thereof shall be the responsibility of DEVELOPER and its surety under this Agreement. The AGENCIES shall not be responsible or liable for any damages or injury of any nature in any way related to or caused by the TUMF Improvements or their condition prior to acceptance. In no event shall WRCOG be responsible for the maintenance, operation or care of the TUMF Improvements
4.0 Fees and Charges. DEVELOPER shall, at its sole cost, expense, and liability, pay all fees, charges, and taxes arising out of the construction of the TUMF Improvements, including, but not limited to, all plan check, design review, engineering, inspection, sewer treatment connection fees, and other service or impact fees established by the AGENCIES.
5.0 Inspection of TUMF Improvements by the AGENCIES. DEVELOPER shall, at its sole cost, expense, and liability, and at all times during construction of the TUMF Improvements, maintain reasonable and safe facilities and provide safe access for inspection by the AGENCIES 345
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of the TUMF Improvements and areas where construction of the TUMF Improvements is occurring or will occur.
6.0 Liens. Upon the expiration of the time for the recording of claims of liens as prescribed by Sections 8412 and 8414 of the Civil Code with respect to the TUMF Improvements, DEVELOPER shall provide to the AGENCIES such evidence or proof as the AGENCIES shall require that all persons, firms and corporations supplying work, labor, materials, supplies and equipment to the construction of the TUMF Improvements, have been paid, and that no claims of liens have been recorded by or on behalf of any such person, firm or corporation. Rather than await the expiration of the said time for the recording of claims of liens, DEVELOPER may elect to provide to the AGENCIES a title insurance policy or other security acceptable to the AGENCIES guaranteeing that no such claims of liens will be recorded or become a lien upon any of the Property.
7.0 Acceptance of TUMF Improvements; As-Built or Record Drawings. If the TUMF Improvements are properly completed by DEVELOPER and approved by the AGENCIES, and if they comply with all applicable federal, state and local laws, ordinances, regulations, codes, standards, and other requirements, the AGENCIES shall be authorized to accept the TUMF Improvements. The AGENCIES may, in its sole and absolute discretion, accept fully completed portions of the TUMF Improvements prior to such time as all of the TUMF Improvements are complete, which shall not release or modify DEVELOPER’s obligation to complete the remainder of the TUMF Improvements. Upon the total or partial acceptance of the TUMF Improvements by AGENCY, DEVELOPER shall file with the Recorder’s Office of the County of Riverside a notice of completion for the accepted TUMF Improvements in accordance with California Civil Code sections 8182, 8184, 9204, and 9208 (“Notice of Completion”), at which time the accepted TUMF Improvements shall become the sole and exclusive property of the AGENCIES without any payment therefore. Notwithstanding the foregoing, the AGENCIES may not accept any TUMF Improvements unless and until DEVELOPER provides one (1) set of “as-built” or record drawings or plans to the AGENCIES for all such TUMF Improvements. The drawings shall be certified and shall reflect the condition of the TUMF Improvements as constructed, with all changes incorporated therein.
8.0 Warranty and Guarantee. DEVELOPER hereby warrants and guarantees all the TUMF Improvements against any defective work or labor done, or defective materials furnished in the performance of this Agreement, including the maintenance of the TUMF Improvements, for a period of one (1) year following completion of the work and acceptance by the AGENCIES (“Warranty”). During the Warranty, DEVELOPER shall repair, replace, or reconstruct any defective or otherwise unsatisfactory portion of the TUMF Improvements, in accordance with the current ordinances, resolutions, regulations, codes, standards, or other requirements of the AGENCIES, and to the approval of the AGENCIES. All repairs, replacements, or reconstruction during the Warranty shall be at the sole cost, expense, and liability of DEVELOPER and its surety.
As to any TUMF Improvements which have been repaired, replaced, or reconstructed during the Warranty, DEVELOPER and its surety hereby agree to extend the Warranty for an additional one (1) year period following the AGENCIES’S acceptance of the repaired, replaced, or reconstructed TUMF Improvements. Nothing herein shall relieve DEVELOPER from any other liability it may have under federal, state, or local law to repair, replace, or reconstruct any TUMF Improvement 346
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following expiration of the Warranty or any extension thereof. DEVELOPER’S warranty obligation under this section shall survive the expiration or termination of this Agreement.
9.0 Administrative Costs. If DEVELOPER fails to construct and install all or any part of the TUMF Improvements, or if DEVELOPER fails to comply with any other obligation contained herein, DEVELOPER and its surety shall be jointly and severally liable to the AGENCIES for all administrative expenses, fees, and costs, including reasonable attorney’s fees and costs, incurred in obtaining compliance with this Agreement or in processing any legal action or for any other remedies permitted by law.
10.0 Default; Notice; Remedies.
10.1 Notice. If DEVELOPER neglects, refuses, or fails to fulfill or timely complete any obligation, term, or condition of this Agreement, or if one or both AGENCIES determine there is a violation of any federal, state, or local law, ordinance, regulation, code, standard, or other requirement, one or both of the AGENCIES may at any time thereafter declare DEVELOPER to be in default or violation of this Agreement and make written demand upon DEVELOPER or its surety, or both, to immediately remedy the default or violation (“Notice”). DEVELOPER shall substantially commence the work required to remedy the default or violation within five (5) days of the Notice. If the default or violation constitutes an immediate threat to the public health, safety, or welfare, one or both of the AGENCIES may provide the Notice verbally, and DEVELOPER shall substantially commence the required work within twenty-four (24) hours thereof.
Immediately upon the AGENCIES’S issuance of the Notice, DEVELOPER and its surety shall be liable to the AGENCIES for all costs of construction and installation of the TUMF Improvements and all other administrative costs or expenses as provided for in this Section 10.0 of this Agreement.
10.2 Failure to Remedy; the AGENCIES’S Action. If the work required to remedy the noticed default or violation is not diligently prosecuted to a completion acceptable to AGENCY within the time frame contained in the Notice, AGENCY may complete all remaining work, arrange for the completion of all remaining work, and/or conduct such remedial activity as in its sole and absolute discretion it believes is required to remedy the default or violation. All such work or remedial activity shall be at the sole and absolute cost, expense, and liability of DEVELOPER and its surety, without the necessity of giving any further notice to DEVELOPER or surety. The AGENCIES’S right to take such actions shall in no way be limited by the fact that DEVELOPER or its surety may have constructed any of the TUMF Improvements at the time of the AGENCIES’S demand for performance. In the event one or both of the AGENCIES elect to complete or arrange for completion of the remaining work and the TUMF Improvements, one or both of the AGENCIES may require all work by DEVELOPER or its surety to cease in order to allow adequate coordination by the AGENCIES.
10.3 Other Remedies. No action by one or both of the AGENCIES pursuant to this Section 10.0 etseq. of this Agreement shall prohibit one or both of the AGENCIES from exercising any other right or pursuing any other legal or equitable remedy available under this Agreement or any federal, state, or local law. The AGENCIES may exercise its rights and remedies independently or cumulatively, and the AGENCIES may pursue inconsistent remedies. The AGENCIES may institute an action for damages, injunctive relief, or specific performance. 347
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11.0 Security; Surety Bonds. Prior to the commencement of any work on the TUMF Improvements, DEVELOPER or its contractor shall provide the AGENCIES with surety bonds in the amounts and under the terms set forth below (“Security”). The amount of the Security shall be based on the estimated actual costs to construct the TUMF Improvements, as determined by the AGENCIES after DEVELOPER has awarded a contract for construction of the TUMF Improvements to the lowest responsive and responsible bidder in accordance with this Agreement (“Estimated Costs”). If one or both of the AGENCIES determine, in their sole and absolute discretion, that the Estimated Costs have changed, DEVELOPER or its contractor shall adjust the Security in the amount requested by the AGENCIES. DEVELOPER’S compliance with this Section 11.0 et seq. of this Agreement shall in no way limit or modify DEVELOPER’s indemnification obligation provided in Section 12.0 of this Agreement.
11.1 Performance Bond. To guarantee the faithful performance of the TUMF Improvements and all the provisions of this Agreement, to protect AGENCY if DEVELOPER is in default as set forth in Section 10.0 etseq. of this Agreement, and to secure the one-year guarantee and warranty of the TUMF Improvements, DEVELOPER or its contractor shall provide AGENCY a faithful performance bond in an amount which sum shall be not less than one hundred percent (100%) of the Estimated Costs. The AGENCY may, in its sole and absolute discretion, partially release a portion or portions of the security provided under this section as the TUMF Improvements are accepted by AGENCY, provided that DEVELOPER is not in default on any provision of this Agreement and the total remaining security is not less than ten (10%) of the Estimated Costs. All security provided under this section shall be released at the end of the Warranty period, or any extension thereof as provided in Section 11.0 of this Agreement, provided that DEVELOPER is not in default on any provision of this Agreement.
11.2 Labor & Material Bond. To secure payment to the contractors, subcontractors, laborers, materialmen, and other persons furnishing labor, materials, or equipment for performance of the TUMF Improvements and this Agreement, DEVELOPER or its contractor shall provide AGENCY a labor and materials bond in an amount which sum shall not be less than one hundred percent (100%) of the Estimated Costs. The security provided under this section may be released by written authorization of MENIFEE or PERRIS, as applicable to the TUMF Improvements in their respective jurisdictions, after six (6) months from the date that MENIFEE or PERRIS, as applicable, accepts the TUMF Improvements. The amount of such security shall be reduced by the total of all stop notice or mechanic’s lien claims of which the AGENCIES are aware, plus an amount equal to twenty percent (20%) of such claims for reimbursement of the AGENCIES’S anticipated administrative and legal expenses arising out of such claims.
11.3 Additional Requirements. The surety for any surety bonds provided as Security shall have a current A.M. Best rating of at least “A” and FSC-VIII, shall be licensed to do business in California, and shall be satisfactory to the AGENCIES. As part of the obligation secured by the Security and in addition to the face amount of the Security, DEVELOPER, its contractor or the surety shall secure the costs and reasonable expenses and fees, including reasonable attorney’s fees and costs, incurred by the AGENCIES in enforcing the obligations of this Agreement.
DEVELOPER, its contractor and the surety shall stipulate and agree that no change, extension of time, alteration, or addition to the terms of this Agreement, the TUMF Improvements, or the plans 348
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and specifications for the TUMF Improvements shall in any way affect its obligation on the Security.
11.4 Evidence and Incorporation of Security. Evidence of the Security shall be provided on the forms set forth in Exhibit “B”, unless other forms are deemed acceptable by the AGENCIES, and when such forms are completed to the satisfaction of the AGENCIES, the forms and evidence of the Security shall be attached hereto as Exhibit “B” and incorporated herein by this reference.
12.0 Indemnification. DEVELOPER shall defend, indemnify, and hold harmless PERRIS, MENIFEE, WRCOG, their elected officials, board members, employees, and agents from any and all actual or alleged claims, demands, causes of action, liability, loss, damage, or injury to property or persons, including wrongful death, whether imposed by a court of law or by administrative action of any federal, state, or local governmental agency, arising out of or incident to any acts, omissions, negligence, or willful misconduct of DEVELOPER, its employees, contractors, or agents in connection with the performance of this Agreement, or arising out of or in any way related to or caused by the TUMF Improvements or their condition prior to PERRIS and MENIFEE’S approval and acceptance of the TUMF Improvements (“Claims”). This indemnification includes, without limitation, the payment of all penalties, fines, judgments, awards, decrees, attorney fees, and related costs or expenses, and the reimbursement of PERRIS, MENIFEE, WRCOG, their elected officials, board members, employees, and/or agents for all legal expenses and costs incurred by each of them. This indemnification excludes only such portion of any Claim which is caused solely and exclusively by the gross negligence or willful misconduct of PERRIS or MENIFEE, with respect to each of their jurisdictions, as determined by a court or administrative body of competent jurisdiction. DEVELOPER’S obligation to indemnify shall survive the expiration or termination of this Agreement, and shall not be restricted to insurance proceeds, if any, received by PERRIS, MENIFEE, WRCOG, their elected officials, board members, employees, or agents.
13.0 Insurance.
13.1 Types; Amounts. DEVELOPER shall procure and maintain, and shall require its contractors to procure and maintain, during performance of this Agreement, insurance of the types and in the amounts described below (“Required Insurance”). If any of the Required Insurance contains a general aggregate limit, such insurance shall apply separately to this Agreement or be no less than two times the specified occurrence limit.
13.1.1 General Liability. Occurrence form general liability insurance at least as broad as Insurance Services Office Form CG 00 01, or equivalent form, with an occurrence limit of Two Million Dollars ($2,000,000) and aggregate limit of Four Million Dollars ($4,000,000) for bodily injury, personal injury, and property damage.
13.1.2 Business Automobile Liability. Business automobile liability insurance at least as broad as Insurance Services Office Form CA 00 01 (coverage symbol 1 – any auto), or equivalent form, with a combined single limit of not less than One Million Dollars ($1,000,000) per occurrence. Such insurance shall include coverage for the ownership, operation, maintenance, use, loading, or unloading of any auto owned, leased, hired, or borrowed by the insured or for which the insured is responsible.
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13.1.3 Workers’ Compensation. Workers’ compensation insurance with limits as required by the Labor Code of the State of California and employers’ liability insurance with limits of not less than One Million Dollars ($1,000,000) per occurrence, at all times during which insured retains employees.
13.1.4 Professional Liability. For any consultant or other professional who will engineer or design the TUMF Improvements, liability insurance for errors and omissions with limits not less than Two Million Dollars ($2,000,000) per occurrence, shall be procured and maintained for a period of five (5) years following completion of the TUMF Improvements. Such insurance shall be endorsed to include contractual liability.
13.2 Deductibles. Any deductibles or self-insured retentions must be declared to and approved by the AGENCIES. At the option of the AGENCIES, either: (a) the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the AGENCIES, their elected officials, officers, employees, agents, and volunteers; or (b) DEVELOPER and its contractors shall provide a financial guarantee satisfactory to the AGENCIES guaranteeing payment of losses and related investigation costs, claims, and administrative and defense expenses.
13.3 Additional Insured; Separation of Insureds. The Required Insurance, except for the professional liability and workers’ compensation insurance, shall name MENIFEE, PERRIS, WRCOG, their elected officials, board members, officers, employees, and agents as additional insureds with respect to work performed by or on behalf of DEVELOPER or its contractors, including any materials, parts, or equipment furnished in connection therewith. For Required Insurance provided by DEVELOPER’S contractors, WRCOG shall be added as an additional insured using ISO CG 2038 or an exact equivalent. The Required Insurance shall contain standard separation of insureds provisions, and shall contain no special limitations on the scope of its protection to MENIFEE, PERRIS, WRCOG, their elected officials, board members, officers, employees, or agents.
13.4 Primary Insurance; Waiver of Subrogation. The Required Insurance, except for the professional liability and workers’ compensation insurance shall be primary with respect to any insurance or self-insurance programs covering the AGENCIES, WRCOG, their elected officials, board members, officers, employees, or agents. The Required Insurance, except for the professional liability insurance, shall provide that the insurance company waives all right of recovery by way of subrogation against the AGENCIES and WRCOG in connection with any damage or harm covered by such policy.
13.5 Certificates; Verification. DEVELOPER and its contractors shall furnish the AGENCIES with original certificates of insurance and endorsements effecting coverage for the Required Insurance. The certificates and endorsements for each insurance policy shall be signed by a person authorized by that insurer to bind coverage on its behalf. All certificates and endorsements must be received and approved by the AGENCIES before work pursuant to this Agreement can begin. The AGENCIES reserves the right to require complete, certified copies of all required insurance policies, at any time.
13.6 Term; Cancellation Notice. DEVELOPER and its contractors shall maintain the Required Insurance for the term of this Agreement and shall replace any certificate, policy, or 350
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endorsement which will expire prior to that date. All policies shall be endorsed to provide that the Required Insurance shall not be suspended, voided, reduced, canceled, or allowed to expire except on thirty (30) days’ prior written notice to the AGENCIES. If such notice of cancellation endorsements are unavailable, DEVELOPER shall provide such thirty (30) days’ written notice of cancellation.
13.7 Insurer Rating. Unless approved in writing by the AGENCIES, all Required Insurance shall be placed with insurers licensed to do business in the State of California and with a current A.M. Best rating of at least “A” and FSC-VIII.
14.0 TUMF Credit.
14.1 DEVELOPER’S TUMF Obligation. DEVELOPER hereby agrees and accepts that as of the date of this Agreement, the amount DEVELOPER is obligated to pay to MENIFEE pursuant to Ordinance No. 2025- 406 as part of the TUMF Program is FOUR MILLION SIX
HUNDRED NINETY EIGHT THOUSAND ONE HUNDRED AND SEVENTY-EIGHT AND 00/100 DOLLARS ($4,698,174) (“TUMF Obligation”). This TUMF Obligation shall be initially determined under the TUMF fee schedule in effect for MENIFEE at the time the DEVELOPER submits a building permit application for the TUMF Improvement. Notwithstanding, this TUMF Obligation does not have to be paid until the Certificate of Occupancy is obtained.
14.2 Fee Adjustments. Notwithstanding the foregoing, DEVELOPER agrees that this Agreement shall not estop MENIFEE from adjusting the TUMF in accordance with the provisions of Ordinance No. 2025- 406.
14.3 Credit Offset Against TUMF Obligation. Pursuant to Ordinance No. 2025-____ and in consideration for DEVELOPER'S obligation under this Agreement for the delivery of TUMF Improvements, credit shall be applied by MENIFEE to offset the TUMF Obligation (“Credit”) subject to adjustment and reconciliation under Section 14.5 of this agreement.
DEVELOPER hereby agrees that the amount of the Credit shall be applied after DEVELOPER has initiated the process of project delivery of TUMF Improvements to the lowest responsible bidder in accordance with this Agreement. DEVELOPER further agrees that the dollar amount of the Credit shall be equal to the lesser of: (A) the bid amount set forth in the contract awarded to the lowest responsible bidder, or (B) the unit cost assumptions for the TUMF Improvement in effect at the time of the contract award, as such assumptions are identified and determined in the most recent TUMF Nexus Study and the TUMF Administrative Plan adopted by WRCOG (“Unit Cost Assumptions”).
The bid amount and the Unit Cost Assumptions are estimated at $8,433,776 as shown in Exhibit “G” and shall hereafter be collectively referred to as the “Estimated Credit”. At no time will the Credit exceed the DEVELOPER’s TUMF Obligation. If the dollar amount of the Estimated Credit exceeds the dollar amount of the TUMF Obligation, DEVELOPER will be deemed to have completely satisfied its TUMF Obligation for the Project and may apply for a reimbursement agreement, to the extent applicable, as provided in Section 14.6 of this Agreement and estimated in Exhibit “G.” If the dollar amount of the Estimated Credit is less than the dollar amount of the TUMF Obligation, the DEVELOPER agrees the Credit shall be applied to offset the TUMF Obligation as follows:
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(i) For residential units in the Project, the Credit shall be applied to all residential units to offset and/or satisfy the TUMF Obligation. The residential units for which the TUMF Obligation has been offset and/or satisfied by use of the Credit, and the amount of offset applicable to each unit, shall be identified in the notice provided to the DEVELOPER by the AGENCIES pursuant to this section.
(ii) For commercial and industrial structures in the Project, the Credit shall be applied to all commercial and industrial development to offset and/or satisfy the TUMF Obligation. The commercial or industrial structure(s) for which the TUMF Obligation has been offset and/or satisfied by use of the Credit, and the amount of offset applicable to such structure(s), shall be identified in the notice provided to the DEVELOPER by the AGENCIES pursuant to this section.
The AGENCIES shall provide DEVELOPER written notice of the determinations that the AGENCIES make pursuant to this section, including how the Credit is applied to offset the TUMF Obligation as described above.
14.4 Verified Cost of the TUMF Improvements. Upon recordation of the Notice of Completion for the TUMF Improvements and acceptance of the TUMF Improvements by MENIFEE or PERRIS, as applicable, DEVELOPER shall submit to the MENIFEE or PERRIS Public Works Director the information set forth in the attached Exhibit “C”. MENIFEE or PERRIS’S Public Works Director, or his or her designee, shall use the information provided by DEVELOPER to calculate the total actual costs incurred by DEVELOPER in delivering the TUMF Improvements covered under this Agreement (“Verified Costs”). MENIFEE or PERRIS’S Public Works Director, as applicable, will use his or her best efforts to determine the amount of the Verified Costs and provide DEVELOPER written notice thereof within thirty (30) calendar days of receipt of all the required information from DEVELOPER. The Agency may request that WRCOG calculate the amount of the Verified Cost. In this case, MENIFEE or PERRIS, as applicable, shall provide WRCOG written notice and all necessary documentation and allow WRCOG fifteen (15) days to determine costs. MENIFEE or PERRIS, as applicable, will notify the DEVELOPER within the previous thirty (30) day deadline
14.5 Reconciliation; Final Credit Offset Against TUMF Obligation. The DEVELOPER is aware of and accepts the fact that Credits are speculative and conceptual in nature. The actual amount of Credit that shall be applied by the AGENCIES to offset the TUMF Obligation shall be equal to the lesser of: (A) the Verified Costs or (B) Unit Cost Assumptions for the TUMF Improvements as determined in accordance with Section 14.3 of this Agreement (“Actual Credit”).
No Actual Credit will be awarded until the Verified Costs are determined through the reconciliation process. Please be advised that while a DEVELOPER may use an engineer’s estimates in order to estimate Credits for project planning purposes, the Actual Credit awarded will only be determined by the reconciliation process.
(a) TUMF Balance. If the dollar amount of the Actual Credit is less than the dollar amount of the TUMF Obligation, the MENIFEE or PERRIS, as applicable, Public Works Director shall provide written notice to DEVELOPER of the amount of the difference owed (“TUMF Balance”) and DEVELOPER shall pay the TUMF Balance in accordance with Ordinance 2025-406 to fully satisfy the TUMF Obligation (see Exhibit “F” - Example “A”). 352
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(b) TUMF Reimbursement. If the dollar amount of the Actual Credit exceeds the TUMF Obligation, DEVELOPER will be deemed to have fully satisfied the TUMF Obligation for the Project and may apply for a reimbursement agreement, to the extent applicable, as provided in Section 14.6 of this Agreement. the AGENCIES shall provide DEVELOPER written notice of the determinations that the AGENCIES make pursuant to this section (see Exhibit “F” - Example “B”).
(c) TUMF Overpayment. If the dollar amount of the Actual Credit exceeds the Estimated Credit, but is less than the TUMF Obligation, but the Actual Credit plus additional monies collected by MENIFEE from DEVELOPER for the TUMF Obligation exceed the TUMF Obligation (“TUMF Overpayment”), DEVELOPER will be deemed to have fully satisfied the TUMF Obligation for the Project and may be entitled to a refund. MENIFEE or PERRIS’S Public Works Director, as applicable, shall provide written notice to WRCOG and DEVELOPER of the amount of the TUMF Overpayment and the AGENCIES shall direct WRCOG to refund the DEVELOPER in accordance with Ordinance 2025-406 (see Exhibit “F” - Example C).
14.6 Reimbursement Agreement. If authorized under either Section 14.3 or Section 14.5 DEVELOPER may apply to the AGENCIES and WRCOG for a reimbursement agreement for the amount by which the Actual Credit exceeds the TUMF Obligation, as determined pursuant to Section 14.3 of this Agreement, Ordinance No. 2025-406, and the TUMF Administrative Plan adopted by WRCOG (“Reimbursement Agreement”). If MENIFEE and WRCOG agree to a Reimbursement Agreement with DEVELOPER, the Reimbursement Agreement shall be executed on the form set forth in Exhibit “D,” and shall contain the terms and conditions set forth therein.
The Parties agree that the Reimbursement Agreement shall be subject to all terms and conditions of this Agreement, and that upon execution, an executed copy of the Reimbursement Agreement shall be attached hereto and shall be incorporated herein as a material part of this Agreement as though fully set forth herein.
15.0 Miscellaneous.
15.1 Assignment. DEVELOPER may, as set forth herein, assign all or a portion of its rights pursuant to this Agreement to a purchaser of a portion or portions of the Property (“Assignment“). DEVELOPER and such purchaser and assignee ("Assignee") shall provide to the AGENCIES such reasonable proof as it may require that Assignee is the purchaser of such portions of the Property. Any assignment pursuant to this Section shall not be effective unless and until DEVELOPER and Assignee have executed an assignment agreement with AGENCY in a form reasonably acceptable to the AGENCIES, whereby DEVELOPER and Assignee agree, except as may be otherwise specifically provided therein, to the following: (1) that Assignee shall receive all or a portion of DEVELOPER'S rights pursuant to this Agreement, including such credit as is determined to be applicable to the portion of the Property purchased by Assignee pursuant to Section 14.0 et seq. of this Agreement, and (2) that Assignee shall be bound by all applicable provisions of this Agreement.
15.2 Relationship Between the Parties. The Parties hereby mutually agree that this Agreement shall not operate to create the relationship of partnership, joint venture, or agency between or among the AGENCIES, WRCOG and DEVELOPER. DEVELOPER’S contractors 353
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are exclusively and solely under the control and dominion of DEVELOPER. Nothing herein shall be deemed to make DEVELOPER or its contractors an agent or contractor of the AGENCIES.
This Agreement shall be interpreted and administered in a manner consistent with the TUMF Administrative Plan in effect at the time this Agreement is executed.
15.3 Warranty as to Property Ownership; Authority to Enter Agreement. DEVELOPER hereby warrants that it owns fee title to the Property and that it has the legal capacity to enter into this Agreement. Each Party warrants that the individuals who have signed this Agreement have the legal power, right, and authority make this Agreement and bind each respective Party.
15.4 Prohibited Interests. DEVELOPER warrants that it has not employed or retained any company or person, other than a bona fide employee working solely for DEVELOPER, to solicit or secure this Agreement. DEVELOPER also warrants that it has not paid or agreed to pay any company or person, other than a bona fide employee working solely for DEVELOPER, any fee, commission, percentage, brokerage fee, gift, or other consideration contingent upon the making of this Agreement. For breach of this warranty, AGENCY shall have the right to rescind this Agreement without liability.
15.5 Notices. All notices, demands, invoices, and written communications shall be in writing and delivered to the following addresses or such other addresses as the Parties may designate by written notice:
To the AGENCIES: City of Menifee
Attn: Public Works Director
29844 Haun Road
Menifee, CA 92586
Telephone: (951) 672-6777
City of Perris
Attn: Public Works Director
101 N. D Street
Perris, CA 92570
Telephone: (951) 943-6100
To WRCOG: Western Riverside Council of Governments
3390 University Avenue, Suite 200
Riverside, CA 92501
Attention: Executive Director
Telephone: (951) 405-6700
Fax No. (951) 223-9720
To DEVELOPER:Core5 Industrial Partners, LLC
Attn: Jon Kelly
300 Spectrum Center Drive, Suite 880
Irvine, CA 92618
Telephone: (949) 467-3290
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Depending upon the method of transmittal, notice shall be deemed received as follows: by facsimile, as of the date and time sent; by messenger, as of the date delivered; and by U.S. Mail first class postage prepaid, as of 72 hours after deposit in the U.S. Mail.
15.6 Cooperation; Further Acts. The Parties shall fully cooperate with one another, and shall take any additional acts or sign any additional documents as may be necessary, appropriate, or convenient to attain the purposes of this Agreement.
15.7 Construction; References; Captions. It being agreed the Parties or their agents have participated in the preparation of this Agreement, the language of this Agreement shall be construed simply, according to its fair meaning, and not strictly for or against any Party. Any term referencing time, days, or period for performance shall be deemed calendar days and not work days. All references to DEVELOPER include all personnel, employees, agents, and contractors of DEVELOPER, except as otherwise specified in this Agreement. All references to the AGENCIES include their elected officials, officers, employees, agents, and volunteers except as otherwise specified in this Agreement. The captions of the various articles and paragraphs are for convenience and ease of reference only, and do not define, limit, augment, or describe the scope, content, or intent of this Agreement.
15.8 Amendment; Modification. No supplement, modification, or amendment of this Agreement shall be binding unless executed in writing and signed by all Parties.
15.9 Termination. This Agreement shall terminate 10 years after the Effective Date, unless extended in writing by the Parties. In addition, this Agreement shall terminate 5 years after the Effective Date in the event that the TUMF Improvements as specified in the Credit Agreement is not commenced within 5 years of the Effective Date.
15.9.1 Waiver. No waiver of any default shall constitute a waiver of any other default or breach, whether of the same or other covenant or condition. No waiver, benefit, privilege, or service voluntarily given or performed by a Party shall give the other Party any contractual right by custom, estoppel, or otherwise.
15.9.2 Binding Effect. Each and all of the covenants and conditions shall be binding on and shall inure to the benefit of the Parties, and their successors, heirs, personal representatives, or assigns. This section shall not be construed as an authorization for any Party to assign any right or obligation.
15.9.3 No Third-Party Beneficiaries. There are no intended third-party beneficiaries of any right or obligation assumed by the Parties.
15.9.4 Invalidity; Severability. If any portion of this Agreement is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect.
15.9.5 Consent to Jurisdiction and Venue. This Agreement shall be construed in accordance with and governed by the laws of the State of California. Any legal action or proceeding brought to interpret or enforce this Agreement, or which in any way arises out of the 355
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Parties’ activities undertaken pursuant to this Agreement, shall be filed and prosecuted in the appropriate California State Court in the County of Riverside, California. Each Party waives the benefit of any provision of state or federal law providing for a change of venue to any other court or jurisdiction including, without limitation, a change of venue based on the fact that a governmental entity is a party to the action or proceeding, or that a federal right or question is involved or alleged to be involved in the action or proceeding. Without limiting the generality of the foregoing waiver, DEVELOPER expressly waives any right to have venue transferred pursuant to California Code of Civil Procedure Section 394.
15.9.6 Time is of the Essence. Time is of the essence in this Agreement, and the Parties agree to execute all documents and proceed with due diligence to complete all covenants and conditions.
15.9.7 Counterparts. This Agreement may be signed in counterparts, each of which shall constitute an original and which collectively shall constitute one instrument.
15.9.8 Entire Agreement. This Agreement contains the entire agreement between AGENCY and DEVELOPER and supersedes any prior oral or written statements or agreements between AGENCY and DEVELOPER.
[SIGNATURES OF PARTIES ON NEXT PAGE]
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IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the day and year first above written.
DEVELOPER:
CORE5 INDUSTRIAL PARTNERS, LLC,
a Delaware limited liability company
By: ______________________________
Its:_______________________________
WESTERN RIVERSIDE COUNCIL OF
GOVERNMENT:
By: ______________________________________
Its: Executive Director-_______________________
APPROVED TO FORM:
By: ________________________________
Its: ________________________________
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AGENCY:
CITY OF MENIFEE
By: ______________________________________
Its: _____________________________________
ATTEST:
By: ________________________________
Its: ________________________________
AGENCY:
CITY OF PERRIS
By: ______________________________________
Its: _____________________________________
ATTEST:
By: ________________________________
Its: ________________________________
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EXHIBIT “A”
LEGAL DESCRIPTION OF PROPERTY
[ATTACH BEHIND THIS PAGE]
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LEGAL DESCRIPTION
Real property in the City of Menifee, County of Riverside, State of California, described as Assessor Parcel Numbers:
Parcel Map No. 38156
APNs:
331-140-010
331-140-018
331-140-021
331-140-025
Parcel Map No. 38432
APNs:
331-150-036
331-150-037
331-150-039
331-150-040
331-150-041
331-150-042
331-150-044
331-150-045
Parcel Map No. 39292
APNs:
331-110-023
331-110-024
331-110-025
331-110-026
331-110-031
331-110-038
331-110-039
331-110-041
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EXHIBIT “B”
FORMS FOR SECURITY
[ATTACHED BEHIND THIS PAGE]
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EXHIBIT B-2
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BOND NO. ___________________
INITIAL PREMIUM: ___________________
SUBJECT TO RENEWAL
PERFORMANCE BOND
WHEREAS, the [INSERT “City” OR “County“] of ___________ (“AGENCY”) has executed an agreement with ________________________________________________ (hereinafter “DEVELOPER”), requiring DEVELOPER to perform certain work consisting of but not limited to, furnishing all labor, materials, tools, equipment, services, and incidentals for the construction of street and transportation system improvements (hereinafter the “Work”); WHEREAS, the Work to be performed by DEVELOPER is more particularly set forth in that certain TUMF Improvement and Credit/Reimbursement Agreement dated ___________________________, (hereinafter the “Agreement”); and WHEREAS, the Agreement is hereby referred to and incorporated herein by this reference; and
WHEREAS, DEVELOPER or its contractor is required by the Agreement to provide a good and sufficient bond for performance of the Agreement, and to guarantee and warranty the Work constructed thereunder.
NOW, THEREFORE, we the undersigned, ______________________________, as Principal and __________________________________, a corporation organized and existing under the laws of the State of _________________________ and duly authorized to transact business under the laws of the State of California, as Surety, are held and firmly bound unto the AGENCY in the sum of _________________________________________________ ($______________), said sum being not less than one hundred percent (100%) of the total cost of the Work as set forth in the Agreement, 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 DEVELOPER and its contractors, or their 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, agreements, guarantees, and warranties in the Agreement and any alteration thereof made as therein provided, 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 to indemnify and save harmless AGENCY, its officers, employees, and agents, as stipulated in the Agreement, then this obligation shall become null and void; otherwise it shall be and remain in full force and effect.
As part of the obligation secured hereby, and in addition to the face amount specified therefor, there shall be included costs and reasonable expenses and fees, including reasonable attorney’s fees, incurred by AGENCY in successfully enforcing such obligation, all to be taxed as costs and included in any judgment rendered.
The said Surety, for value received, hereby stipulates and agrees that no change, extension of time, alteration or additions to the terms of the said Agreement or to the Work to be performed 362
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thereunder or the specification accompanying the same shall in any way affect its obligations on this bond, and it does hereby waive notice of any such change, extension of time, alteration or addition to the terms of the Agreement or to the Work.
IN WITNESS WHEREOF, we have hereto set our hands and seals this ____ day on _____________________, 20__.
________________________________
Principal
By: ___________________________
President
________________________________
Surety
By: ___________________________
Attorney-in-Fact
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EXHIBIT B-4
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CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT CIVIL CODE §1189
STATE OF CALIFORNIA )
COUNTY OF )
On , before me,
, Date Here Insert Name and Title of the Officer
personally appeared , Name(s) of Signer(s)
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
Signa
ture of Notary Public
Place Notary Seal Above
____________________________________OPTIONAL____________________________________ Though this section is optional, completing this information can deter alteration of the document or fraudulent reattachment of this form to an unintended document.
Description of Attached Document
Title of Type of Document: Document Date:
Number of Pages: Signer(s) Other Than Named Above:
Capacity(ies) Claimed by Signer(s)
Signer’s Name:
Corporate Officer – Title(s):
Partner - Limited General
Individual Attorney in Fact
Trustee Guardian or Conservator
Signer’s Name:
Corporate Officer – Title(s):
Partner - Limited General
Individual Attorney in Fact
Trustee Guardian or Conservator
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.
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EXHIBIT B-5
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CERTIFICATE AS TO CORPORATE PRINCIPAL
I, _____________________________, certify that I am the ________________ Secretary of the corporation named as principal in the attached bond, that _____________________________________ who signed the said bond on behalf of the principal was then ____________________________________ of said corporation; that I know his signature, and his signature thereto is genuine; and that said bond was duly signed, sealed and attested for and in behalf of said corporation by authority of its governing Board. (Corporate Seal) _________________________________
Signature
_____________________
Date
NOTE: A copy of the power of attorney to local representatives of the bonding company may be attached hereto.
Other:
Signer is Representing:
Other:
Signer is Representing:
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EXHIBIT B-6
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BOND NO. ___________________
INITIAL PREMIUM: ___________________
SUBJECT TO RENEWAL
LABOR & MATERIAL BOND
WHEREAS, the [INSERT “City” OR “County”] of ___________ (“AGENCY”) has executed an agreement with _____________________________________ (hereinafter “DEVELOPER”), requiring DEVELOPER to perform certain work consisting of but not limited to, furnishing all labor, materials, tools, equipment, services, and incidentals for the construction of street and transportation system improvements (hereinafter “Work”); WHEREAS, the Work to be performed by DEVELOPER is more particularly set forth in that certain Improvement and Credit / Reimbursement Agreement dated ___________________________, (hereinafter the “Agreement”); and WHEREAS, DEVELOPER or its contractor is required to furnish a bond in connection with the Agreement providing that if DEVELOPER or any of his or its contractors shall fail to pay for any materials, provisions, or other supplies, or terms 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 provisions of 3248 of the California Civil Code, with respect to such work or labor, that the Surety on this bond will pay the same together with a reasonable attorney’s fee in case suit is brought on the bond.
NOW, THEREFORE, we the undersigned, ______________________________, as Principal and ____________________________________, a corporation organized and existing under the laws of the State of _________________________ and duly authorized to transact business under the laws of the State of California, as Surety, are held and firmly bound unto the AGENCY and to any and all material men, persons, companies or corporations furnishing materials, provisions, and other supplies used in, upon, for or about the performance of the said Work, and all persons, companies or corporations renting or hiring teams, or implements or machinery, for or contributing to said Work to be done, and all persons performing work or labor upon the same and all persons supplying both work and materials as aforesaid, the sum of ____________________________________________________________ ($_______________), said sum being not less than 100% of the total amount payable by DEVELOPER under the terms of the Agreement, for which payment 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 DEVELOPER or its contractors, or their heirs, executors, administrators, successors, or assigns, shall fail to pay for any materials, provisions, or other supplies or machinery used in, upon, for or about the performance of the Work contracted to be done, or for work or labor thereon of any kind, or fail to pay any of the persons named in California Civil Code Section 9100, or amounts due under the Unemployment Insurance Code with respect to work or labor performed by any such claimant, or for any amounts required to be deducted, withheld, and paid over to the Employment Development Department from the wages of employees of the contractor and his subcontractors pursuant to 366
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Section 13020 of the Unemployment Insurance Code with respect to such work and labor, and all other applicable laws of the State of California and rules and regulations of its agencies, then said Surety will pay the same in or to an amount not exceeding the sum specified herein.
In case legal action is required to enforce the provisions of this bond, the prevailing party shall be entitled to recover reasonable attorneys’ fees in addition to court costs, necessary disbursements and other consequential damages. In addition to the provisions hereinabove, it is agreed that this bond will inure to the benefit of any and all persons, companies and corporations entitled to make claims under Sections 8024, 8400, 8402, 8404, 8430, 9100 of the California Civil Code, so as to give a right of action to them or their assigns in any suit brought upon this bond.
The said Surety, for value received, hereby stipulates and agrees that no change, extension of time, alteration or additions to the terms of the Agreement or to the Work to be performed thereunder or the specification accompanying the same shall in any way affect its obligations on this bond, and it does hereby waive notice of any such change, extension of time, alteration or addition to the terms of the Agreement or to the Work.
IN WITNESS WHEREOF, we have hereto set our hands and seals this ____ day on _____________________, 20__.
________________________________
Principal
By: ___________________________
President
________________________________
Surety
By: ___________________________
Attorney-in-Fact
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EXHIBIT B-8
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CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT CIVIL CODE §1189
STATE OF CALIFORNIA )
COUNTY OF )
On , before me,
, Date Here Insert Name and Title of the Officer
personally appeared , Name(s) of Signer(s)
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
Signa
ture of Notary Public
Place Notary Seal Above
____________________________________OPTIONAL____________________________________ Though this section is optional, completing this information can deter alteration of the document or fraudulent reattachment of this form to an unintended document.
Description of Attached Document
Title of Type of Document: Document Date:
Number of Pages: Signer(s) Other Than Named Above:
Capacity(ies) Claimed by Signer(s)
Signer’s Name:
Corporate Officer – Title(s):
Partner - Limited General
Individual Attorney in Fact
Trustee Guardian or Conservator
Signer’s Name:
Corporate Officer – Title(s):
Partner - Limited General
Individual Attorney in Fact
Trustee Guardian or Conservator
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.
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EXHIBIT B-9
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CERTIFICATE AS TO CORPORATE PRINCIPAL
I, _____________________________, certify that I am the ________________ Secretary of the corporation named as principal in the attached bond, that _____________________________________ who signed the said bond on behalf of the principal was then ____________________________________ of said corporation; that I know his signature, and his signature thereto is genuine; and that said bond was duly signed, sealed and attested for and in behalf of said corporation by authority of its governing Board. (Corporate Seal) _________________________________
Signature
_____________________
Date
NOTE: A copy of the power of attorney to local representatives of the bonding company may be attached hereto.
Other:
Signer is Representing:
Other:
Signer is Representing:
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EXHIBIT C-1
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EXHIBIT “C”
DOCUMENTATION TO BE PROVIDED TO AGENCY BY DEVELOPER FOR
DETERMINATION OF VERIFIED COSTS
To assist AGENCY in determining the Verified Costs for a completed TUMF Improvement, DEVELOPER shall provide the following documents to AGENCY:
1. Plans, specifications and DEVELOPER’s civil engineer’s cost estimate;
2. If DEVELOPER is seeking Credit for such costs, documentation evidencing cost of any required environmental studies, preparation of designs, plans and specifications, required right of way acquisition, and other costs directly related to the development of the TUMF Improvement. Only actual, documented and reasonable costs directly related to the TUMF Improvement will be considered. Costs should be documented as specified below.
3. Costs claimed for right of way acquisition must be accompanied by an appraisal (no more than two years old at the time of acquisition) completed by an MAI appraiser, and documentation of transfer of such right of way to the AGENCY, or applicable public agency.
The appraisal must be approved by the AGENCY as valid and acceptable.
4. List of bidders from whom bids were requested;
5. Construction schedules and progress reports;
6. Contracts, insurance certificates and change orders with each contractor, consultant, service provider or vendor;
7. Invoices received from all contractors, consultants, service providers and vendors;
8. Canceled checks for payments made to contractors, consultants, service providers and vendors (copy both front and back of canceled checks);
9. Spreadsheet showing total costs incurred in and related to the construction of each TUMF Improvement and the check number for each item of cost and invoice;
10. Final lien releases from each contractor and vendor; and
11. Such further documentation as may be reasonably required by AGENCY to evidence the completion of construction and the payment of each item of cost and invoice. 370
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EXHIBIT D-1
20323.00004\30163105.4
EXHIBIT “D”
REIMBURSEMENT AGREEMENT
TRANSPORTATION UNIFORM MITIGATION FEE PROGRAM
THIS REIMBURSEMENT AGREEMENT (“Agreement”) is entered into this ___ day of ___________________, 20___, by and between the [INSERT “City” OR “County”] of ___________, [**INSERT “a California municipal corporation” FOR CITY OR “a subdivision of the State of California” FOR COUNTY**] (“AGENCY”), the Western Riverside Council of Governments (“WRCOG”), a Joint Powers Agency and ________________________________, a California [**INSERT TYPE OF ENTITY - corporation, partnership, sole proprietorship or other legal entity**], with its principal place of business at [**ENTER ADDRESS**] (“DEVELOPER”). AGENCY and DEVELOPER are sometimes hereinafter referred to individually as “Party” and collectively as “Parties”.
RECITALS
WHEREAS, AGENCY, WRCOG and DEVELOPER are parties to an agreement dated ________________, 20___, entitled “Improvement and Credit Agreement - Transportation Uniform Mitigation Fee Program” (hereinafter “Credit Agreement”); WHEREAS, Sections 14.1 through 14.3 of the Credit Agreement provide that DEVELOPER is obligated to pay AGENCY the TUMF Obligation, as defined therein, but shall receive credit to offset the TUMF Obligation if DEVELOPER constructs and AGENCY accepts the TUMF Improvements in accordance with the Credit Agreement; WHEREAS, Section 14.5 of the Credit Agreement provides that if the dollar amount of the credit to which DEVELOPER is entitled under the Credit Agreement exceeds the dollar amount of the TUMF Obligation, DEVELOPER may apply to AGENCY and WRCOG for a reimbursement agreement for the amount by which the credit exceeds the TUMF Obligation; WHEREAS, Section 14.5 additionally provides that a reimbursement agreement executed pursuant to the Credit Agreement (i) shall be executed on the form attached to the Credit Agreement, (ii) shall contain the terms and conditions set forth therein, (iii) shall be subject to all terms and conditions of the Credit Agreement, and (iv) shall be attached upon execution to the Credit Agreement and incorporated therein as a material part of the Credit Agreement as though fully set forth therein; and
WHEREAS, AGENCY and WRCOG have consented to execute a reimbursement agreement with DEVELOPER pursuant to the Credit Agreement, (insert appropriate reference for city or county ), and the TUMF Administrative Plan adopted by WRCOG.
NOW, THEREFORE, for the purposes set forth herein, and for good and valuable consideration, the adequacy of which is hereby acknowledged, the Parties hereby agree as follows:
371
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20323.00004\30163105.4
TERMS
1.0 Incorporation of Recitals. The Parties hereby affirm the facts set forth in the Recitals above and agree to the incorporation of the Recitals as though fully set forth herein.
2.0 Effectiveness. This Agreement shall not be effective unless and until the Credit Agreement is effective and in full force in accordance with its terms.
3.0 Definitions. Terms not otherwise expressly defined in this Agreement, shall have the meaning and intent set forth in the Credit Agreement.
4.0 Amount of Reimbursement. Subject to the terms, conditions, and limitations set forth in this Agreement, the Parties hereby agree that DEVELOPER is entitled to receive the dollar amount by which the Actual Credit exceeds the dollar amount of the TUMF Obligation as determined pursuant to the Credit Agreement, (insert appropriate reference for city or county), and the TUMF Administrative Plan adopted by WRCOG (“Reimbursement”).The Reimbursement shall be subject to verification by WRCOG. AGENCY and DEVELOPER shall provide any and all documentation reasonably necessary for WRCOG to verify the amount of the Reimbursement. The Reimbursement shall be in an amount not exceeding [INSERT DOLLAR AMOUNT] (“Reimbursement Amount”). WRCOG shall, upon receipt and approval of information requested by WRCOG, shall be responsible for transmitting the Reimbursement Amount to the DEVELOPER. In no event shall the dollar amount of the Reimbursement exceed the difference between the dollar amount of all credit applied to offset the TUMF Obligation pursuant to Section
14.3, 14.4, and 14.5 of the Credit Agreement, and one hundred (100%) of the approved unit awarded, as such assumptions are identified and determined in the Nexus Study and the TUMF Administrative Plan adopted by WRCOG.
5.0 Payment of Reimbursement; Funding Contingency. The payment of the Reimbursement Amount shall be subject to the following conditions:
5.1 DEVELOPER shall have no right to receive payment of the Reimbursement unless and until (i) the TUMF Improvements are completed and accepted by AGENCY in accordance with the Credit Agreement, (ii) the TUMF Improvements are scheduled for funding pursuant to the five-year Transportation Improvement Program adopted annually by WRCOG, (iii) WRCOG has funds available and appropriated for payment of the Reimbursement amount.
5.2 DEVELOPER shall not be entitled to any interest or other cost adjustment for any delay between the time when the dollar amount of the Reimbursement is determined and the time when payment of the Reimbursement is made to DEVELOPER by WRCOG through AGENCY.
6.0 Affirmation of Credit Agreement. AGENCY and DEVELOPER represent and warrant to each other that there have been no written or oral modifications or amendments of the Credit Agreement, except by this Agreement. AGENCY and DEVELOPER ratify and reaffirm each and every one of their respective rights and obligations arising under the Credit Agreement. AGENCY and DEVELOPER represent and warrant that the Credit Agreement is currently an effective, valid, and binding obligation.
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20323.00004\30163105.4
7.0 Incorporation Into Credit Agreement. Upon execution of this Agreement, an executed original of this Agreement shall be attached as Exhibit “D” to the Credit Agreement and shall be incorporated therein as a material part of the Credit Agreement as though fully set forth therein.
8.0 Terms of Credit Agreement Controlling. Each Party hereby affirms that all provisions of the Credit Agreement are in full force and effect and shall govern the actions of the Parties under this Agreement as though fully set forth herein and made specifically applicable hereto, including without limitation, the following sections of the Credit Agreement: Sections 10.0 through 10.3, Section 12.0, Sections 13.0 through 13.7, Sections 14.0 through 14.6, and Sections 15.0 through
15.17. [SIGNATURES OF PARTIES ON NEXT PAGE]
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EXHIBIT D-4
20323.00004\30163105.4
IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the day and year first above written.
___________________________________
(“DEVELOPER”)
By: ______________________________________
Its: _______________________________________
ATTEST:
By: ________________________________
Its: ________________________________
[INSERT “City” OR “County”) of ___________
By: ______________________________________
Its: _______________________________________
ATTEST:
By: ________________________________
Its: ________________________________
374
EXHIBIT G-2
EXHIBIT “E”
TUMF CREDIT / REIMBURSEMENT ELIGIBILITY PROCESS
1. Prior to the construction of any TUMF Improvement, DEVELOPER shall follow the steps listed below:
(a) Prepare a separate bid package for the TUMF Improvements. (b) The plans, cost estimate, specifications and contract document shall require all contractors to pay prevailing wages and to comply with applicable provisions of the Labor Code, Government Code, and Public Contract Code relating to Public Works Projects. (c) Bids shall be obtained and processed in accordance with the formal public works bidding requirements of the AGENCY.
(d) The contract(s) for the construction of TUMF Improvements shall be awarded to the lowest responsible bidder(s) for the construction of such facilities in accordance with the AGENCY’s requirements and guidelines.
(e) Contractor(s) shall be required to provide proof of insurance coverage throughout the duration of the construction.
2. Prior to the determination and application of any Credit pursuant to a TUMF Improvement and Credit Agreement executed between AGENCY and DEVELOPER ("Agreement"), DEVELOPER shall provide the AGENCY and WRCOG with the following:
(a) Copies of all information listed under Item 1 above. (b) Surety Bond, Letter of Credit, or other form of security permitted under the Agreement and acceptable to the AGENCY and WRCOG, guaranteeing the construction of all applicable TUMF Improvements.
3. Prior to the AGENCY’s acceptance of any completed TUMF Improvement, and in order to initiate the construction cost verification process, the DEVELOPER shall comply with the requirements as set forth in Sections 7, 14.2 and 14.3 of the Agreement, and the following conditions shall also be satisfied:
(a) DEVELOPER shall have completed the construction of all TUMF Improvements in accordance with the approved Plans and Specifications. (b) DEVELOPER shall have satisfied the AGENCY’s inspection punch list. (c) After final inspection and approval of the completed TUMF Improvements, the AGENCY shall have provided the DEVELOPER a final inspection release letter.
375
EXHIBIT G-2
(d) AGENCY shall have filed a Notice of Completion with respect to the TUMF Improvements pursuant to Section 3093 of the Civil Code with the County Recorder’s Office, and provided a copy of filed Notice of Completion to WRCOG. (e) DEVELOPER shall have provided AGENCY a copy of the As-Built plans for the TUMF Improvements.
(f) DEVELOPER shall have provided AGENCY copies of all permits or agreements that may have been required by various resource/regulatory agencies for construction, operation and maintenance of any TUMF Improvements. (g) DEVELOPER shall have submitted a documentation package to the AGENCY to determine the final cost of the TUMF Improvements, which shall include at a minimum, the following documents related to the TUMF Improvements:
(i) Plans, specifications, and DEVELOPER'S Civil Engineer’s cost estimates; or Engineer’s Report showing the cost estimates. (ii) If DEVELOPER is seeking Credit for such costs, documentation evidencing cost of any required environmental studies, preparation of designs, plans and specifications, required right of way acquisition, and other costs directly related to the development of the TUMF Improvements. Only actual, documented and reasonable costs directly related to the TUMF Improvements will be considered. Costs should be documented as specified below.
(iii) Costs claimed for right of way acquisition must be accompanied by an appraisal (no more than two years old at the time of acquisition) completed by an MAI appraiser, and documentation of transfer of such right of way to the AGENCY, or applicable public agency. The appraisal must be approved by the AGENCY as valid and acceptable. (iv) Contracts/agreements, insurance certificates and change orders with each vendor or contractor.
(v) Invoices from all contractors, consultants, service providers and vendors.
(vi) Copies of cancelled checks, front and back, for payments made to contractors, consultants, service providers and vendors. (vii) Final lien releases from each contractor and vendor (unconditional waiver and release).
(viii) Certified contract workers payroll for AGENCY verification of compliance with prevailing wages.
(ix) A total cost summary, in spreadsheet format (MS Excel is preferred) and on disk, showing a breakdown of the total costs incurred. The summary should include for each item claimed the check number, cost, invoice numbers, and name of payee. See 376
EXHIBIT G-2
attached sample for details. [ATTACH SAMPLE, IF APPLICABLE; OTHERWISE DELETE
REFERENCE TO ATTACHED SAMPLE
377
EXHIBIT G-2
EXHIBIT “F”
RECONCILIATION
EXAMPLES
All examples are based on a single family residential development project of 200 dwelling units:
200 SF dwelling units @ $6,650 / dwelling unit = $1,330,000 in fees (TUMF Obligation) Example A: “TUMF BALANCE”
CREDIT
TUMF Obligation: $1,330,000
Estimated Credit: Bid ($1,500,000) or unit Cost Assumption ($1,600,000) whichever is less $1,500,000 Potential Reimbursement: ($170,000)
RECONCILIATION
TUMF Obligation: $1,330,000
Actual Credit: $1,200,000
TUMF Balance (Payment to TUMF): $130,000
Example B: “REIMBURSEMENT”
CREDIT
TUMF Obligation: $1,330,000
Estimated Credit: Bid ($1,500,000) or unit Cost Assumption ($1,600,000) whichever is less $1,500,000 Potential Reimbursement: ($170,000)
RECONCILIATION
TUMF Obligation: $1,330,000
Actual Credit: $1,500,000
Reimbursement Agreement with Developer (Based on Priority Ranking): ($170,000) Example C: “TUMF OVERPAYMENT”
CREDIT
TUMF Obligation: $1,330,000
Estimated Credit: Bid ($1,200,000) or unit Cost Assumption ($1,500,000) whichever is less $1,200,000 Remaining TUMF Obligation: $130,000
Prorated Fee: $130,000 / 200 du = $650 / du
RECONCILIATION
Actual Credit: $1,300,000
TUMF payments from Developer ($650 per unit x 200 units) $130,000 Actual Credit plus TUMF Payment $1,430,000
TUMF Obligation: $1,330,000
Actual Credit plus TUMF Payment $1,430,000
TUMF Overpayment (Refund to Developer): ($100,000)
378
EXHIBIT G-2
EXHIBIT "G"
Estimated TUMF Credit / Reimbursement Summary
Menifee Commerce Center I, LLC / Menifee Commerce Center II, LLC Parcel Map No. 38156, 38432, & 39292
List of Eligible Streets/Facilities under TUMF Network:
Ethanac Raod: I-215 to Antelope Road
Note: The amounts shown in this Exhibit are subject to cost validation and reconciliation.
TUMF Improvement and Credit Agreement
PM Nos. 38156, 38432, 39292
Menifee Commerce Center I, LLC Menifee Commerce Center Phase II, LLC Heritage Valley Business Center Venture, LLC TUMF Credit Cost Factors:
Paid TUMF (see next page for details)
Estimated TUMF Obligation (see next page for details)
TUMF Cost Assumptions (see next page for details)
$ -
$ 4,698,174
$ 8,433,776
TUMF Reimbursement:
Estimated TUMF Obligation
Maximum Cost (Lesser of Bid Amount or Unit Cost Assumptions) Estimated TUMF Reimbursement (Cost exceeding Obligation amount) $ 4,698,174
$ 8,433,776
$ 3,735,601
379
EXHIBIT G-2
EXHIBIT "G"
Maximum TUMF Cost Assumptions
Menifee Commerce Center I, LLC / Menifee Commerce Center II, LLC Parcel Map No. 38156, 38432, & 39292
ESTIMATED TUMF OBLIGATION CALCULATION
TUMF Obligation
Fee per
SF (1)
Bldg 1 SF
(PM No. 38156)
Bldg 2 SF
(PM No. 38432)
Bldg 3 SF
(PM No. 39292)
Total TUMF
Amount
High-Cub Warehouse/Distribution Center
$2.33
1,046,539 1,138,638 829,000
Gross Floor Area (Less 200,000) 846,539 938,638 629,000 Multiplied by 0.52 440,200 488,092 327,080
Plus 200,000 = TUMF Assessed SF (2) 640,200 688,092 688,092 Total TUMF Fee Obligation (1) x (2) $1,491,667 $1,603,254 $1,603,254 $4,698,174
TUMF UNIT COST ASSUMPTION CALCULATION
TUMF Network Road Segment applicable to Proposed Improvements Cost Item Amount Ethanac Street (I-215 to Sherman)
Network Distance: * 0.52 Road Const $2,593,000
Existing Lanes: 2 ROW Cost $3,793,000
Increase in Lanes: 2 Planning (10%) $259,000
Engineering (25%) $648,000
Contingency (10%) $638,000
* Revised network length and total costs per Cameron Brown. Network Road Segment Cost Est * $7,931,000 $7,625,962
$1,444
Network Unit Cost per Lane mile
Network Unit Cost per Lane foot
Road Improvement Cost Estimate (based on Network Unit Cost per Lane foot) Lane Construction Limits (Sta. to Sta.) Total Linear Feet Segment Amount 1 76+39.45 100+00.00 2,360.55 $3,409,368
2 76+39.45 100+00.00 2,360.55 $3,409,368
TUMF Road Total 4,721.10 $6,818,736
TUMF Network Road Segment applicable to Proposed Improvements Cost Item Amount Ethanac Street (Sherman to Mathews)
Network Distance: 0.61 Road Const $1,388,000
Existing Lanes: 2 ROW Cost $601,000
Increase in Lanes: 2 Planning (10%) $139,000
Engineering (25%) $347,000
Contingency (10%) $199,000
Network Road Segment Cost Est $2,674,000
$2,191,803
$415
Network Unit Cost per Lane mile
Network Unit Cost per Lane foot
Road Improvement Cost Estimate (based on Network Unit Cost per Lane foot) Lane Construction Limits (Sta. to Sta.) Linear Feet Amount 1 100+00.00 122+50.59 Estimate Only --> 2,250.59 $934,252 2 100+00.00 116+40.00 Estimate Only --> 1,640.00 $680,787 TUMF Road Total 3,890.59 $1,615,039
TUMF Improvement and Credit Agreement
PM Nos. 38156, 38432, 39292
Menifee Commerce Center I, LLC Menifee Commerce Center Phase II, LLC Heritage Valley Business Center Venture, LLC TOTAL TUMF UNIT COST ASSUMPTION FOR ELIGIBLE IMPROVEMENTS $8,433,776 380
CITY OF PERRIS
CITY COUNCIL
AGENDA SUBMITTAL
10.K
BACKGROUND/DISCUSSION:
MEETING DATE: October 13, 2026
SUBJECT: Consideration to Conduct the Second Reading by Title Only and Adopt Ordinance No. 1479 Approving Zoning Code Text Amendment 26- 00004 – A city-initiated proposal to amend Title 19 (Zoning Code) of the Perris Municipal Code by updating the Accessory Dwelling Unit regulations in Chapter 19.81 and the Reasonable Accommodations in Housing provisions in Chapter 19.87 for compliance with State law.
Applicant: City of Perris.
REQUESTED ACTION: Second Reading and Adoption of Ordinance No. 1479 approving Zoning Code Text Amendment 26-00004 to amend the Perris Municipal Code to update Chapter 19.81 (Accessory Dwelling Units) and 19.87 (Reasonable Accommodations in Housing), based on the findings contained herein.
CONTACT: Kenneth Phung, Director of Development Services On September 29, 2026, the City Council unanimously voted 5-0 to introduce the first reading of Ordinance No. 1479, approving Zoning Code Text Amendment 26-00004 to update Accessory Dwelling Unit regulations in Chapter 19.81 and the Reasonable Accommodations in Housing provisions in Chapter 19.87 for compliance with housing regulations recently updated by the State.
These updates will enable both the public and City staff to understand what is permitted, the applicable approval process for ADU and JADU additions and expansions, and the process for requesting reasonable accommodations in housing for individuals with disabilities.
RECOMMENDATION:
Staff is recommending the adoption of Ordinance No. 1479, approving Zoning Code Text Amendment 26-00004, to amend Title 19 (Zoning Code) of the Perris Municipal Code to update the Accessory Dwelling Unit regulations in Chapter 19.81 and the Reasonable Accommodations in Housing provisions in Chapter 19.87, based on the findings contained in the Ordinance. Upon adoption of the Ordinance, the code amendment will become effective on November 12, 2026. 381
BUDGET (or FISCAL) IMPACT:
Staff time for preparing the staff report is budgeted in the 2026-2027 Development Services Budget.
Prepared By: Rafael Garcia, Principal Planner
Attachments:
1. Ordinance No. 1479 Adopting the Zoning Code Text Amendment including Exhibit A
2. City Council Staff Report without Exhibits- Dated September 29, 2026 382
ATTACHMENT 1
Ordinance No. 1479 exempting the Project
from CEQA and amending the Zoning
Code, Title 19 of the Perris Municipal Code
383
ORDINANCE NO. 1479 Page 1
ORDINANCE NUMBER 1479
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY
OF PERRIS, COUNTY OF RIVERSIDE, STATE OF
CALIFORNIA, FINDING AN EXEMPTION FROM CEQA
AND ADOPTING, BASED ON THE FINDINGS NOTED
HEREIN, ZONING CODE TEXT AMENDMENT 26-00004,
AMENDING CHAPTERS 19.81 (ACCESSORY DWELLING
UNITS) AND 19.87 (REASONABLE ACCOMMODATIONS
IN HOUSING) OF THE PERRIS MUNICIPAL CODE TO
UPDATE THE CITY’S REGULATIONS FOR
COMPLIANCE WITH APPLICABLE LAW
WHEREAS, the City of Perris (“City”) is a general law city within the State of California; and
WHEREAS, the City of Perris initiated a Zoning Code Text Amendment 26-00004 to update the City’s ADU regulations in Chapter 19.81 of the Perris Municipal Code (PMC) in compliance with State law, and to update the City’s required findings for approval of Reasonable Accommodations in Housing in PMC Chapter 19.87 to align with applicable fair housing regulations and objective evidence requirements; and
WHEREAS, Zoning Code Text Amendment 26-00004, which proposes the text changes shown in Attachment 1 hereto, (collectively hereafter referred to as “Zoning Code Text Amendment 26-00004”), is proposed to amend Chapters 19.81 (Accessory Dwelling Units and Junior Accessory Dwelling Units) and 19.87 (Reasonable Accommodations) of Title 19 of the PMC, to update the City’s aforementioned regulations in compliance with applicable law; and WHEREAS, California law recognizes Accessory Dwelling Units and Junior Accessory Dwelling Units as an important component of the statewide housing supply and requires local agencies to process qualifying applications ministerially, without discretionary review or a public hearing, and within applicable statutory timeframes; and WHEREAS, the proposed amendments update local definitions, application processing requirements, ministerial review procedures, allowable locations, development standards, parking requirements, deed restriction requirements, provisions for unpermitted units, and certificate of occupancy requirements to align the Perris Municipal Code with current state Accessory Dwelling Unit and Junior Accessory Dwelling Unit law; and
WHEREAS, the proposed amendments preserve the City’s ability to apply objective local development standards, including standards related to building and fire code compliance, sanitation, kitchen facilities, architectural compatibility, and operational requirements, to the extent such standards are permitted by state law and do not preclude state-protected Accessory Dwelling Units or Junior Accessory Dwelling Units; and
384
ORDINANCE NO. 1479 Page 2
WHEREAS, on August 19, 2026, the Planning Commission conducted a legally noticed public hearing for Zoning Code Text Amendment 26-00004, and thereafter adopted Resolution No. 26-15 recommending that the City Council find a CEQA exemption and adopt said Zoning Code Text Amendment 26-00004; and
WHEREAS, on September 29, 2026, the City Council conducted a legally noticed public hearing for Zoning Code Text Amendment 26-00004, and having done so, now sees fit and intends to find a CEQA exemption and adopt Zoning Code Text Amendment 26-00004 as provided herein; and
WHEREAS, on July 16, 2026, the Riverside County Airport Land Use Commission (ALUC) determined that the amendment is consistent with the 2014 March Air Reserve Base/Inland Port Airport Land Use Compatibility Plan (MARB ALUCP) and the 2010 Perris Valley Airport ALUCP; and
WHEREAS, all legal prerequisites for the adoption of this Ordinance have occurred.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PERRIS DOES ORDAIN AS FOLLOWS:
Section 1. The above recitals are all true and correct and are incorporated herein by this reference as findings of act.
Section 2. The City Council finds, based on the whole administrative record, that the proposed Zoning Code Text Amendment 26-00004 is not a “project” within the meaning of the California Environmental Quality Act (CEQA), as it does not have the potential for resulting in either a direct physical change in the environment or a reasonably foreseeable indirect physical change in the environment, and constitutes organizational or administrative activities of the City that will not result in direct or indirect physical changes in the environment, as further detailed below; and that, alternatively, the proposed Zoning Code Text Amendment 26-00004 is exempt from CEQA pursuant to CEQA Guidelines Section 15061(b)(3) (Common Sense Exemption), which provides that a project is exempt from CEQA if the activity is covered by the common sense exemption that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Here, it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, so the activity is not subject to CEQA. The amendment is proposing to update Chapter 19.81 (Accessory Dwelling Units) and
19.87 (Reasonable Accommodations in Housing) aligning reasonable accommodation findings with fair housing regulations and objective evidence requirements. The changes ensure the City’s regulations are in conformity with applicable law and thereby ensure the validity of the City’s regulations, which are left intact to the maximum extent permitted by State law, and do not authorize any particular development.
Section 3. The City Council further finds as follows:
385
ORDINANCE NO. 1479 Page 3
A. The proposed Zoning Code Text Amendment is necessary to update the City’s ADU regulations in compliance with State law. Accordingly, Zoning Code Text Amendment 26-00004 is designed to implement California’s ADU statutory framework by recognizing ADUs as an essential component of the housing supply, requiring ministerial review for qualifying applications, limiting local discretion, and applying objective standards only to the extent allowed by state law. The proposed Zoning Code Text Amendment expressly provides that state law prevails in the event of a conflict, which reduces the risk that a local standard will be applied in a manner inconsistent with the Government Code.
B. The proposed Zoning Code Text Amendment will not have a negative effect on public health, safety, or the general welfare of the community because the proposed Zoning Code Text amends Chapters 19.81 and 19.87 of the Perris Municipal Code, which updates the City’s ADU regulations in compliance with State law and thereby ensures the validity of the City’s ADU regulations while generally maintaining the maximum degree of local control permitted by state law. Therefore, the proposed Zoning Code Text Amendment enhances, rather than diminishes, the City’s ability to protect public health, safety, and welfare.
C. The proposed Zoning Code Text Amendment is consistent with the General Plan. The proposed Zoning Code Text Amendment advances numerous goals, policies, and implementation measures set forth therein, including Goal 1, Policy I.A, and Goal 4 of the Land Use Element, by ensuring the City’s ADU regulations are in compliance with State law and thereby promoting quality housing for households at all income levels and stages of life and a variety of housing types to satisfy changing demands. The proposed Zoning Code Text Amendment is also consistent with the Housing Element and ensures continued satisfaction of Action 3.4 thereof.
Section 4. Based upon the foregoing and the whole administrative record, including but not limited to, all statements and reports (including all attachments and exhibits) presented at its public hearing on September 29, 2026, the City Council approves Zoning Code Text Amendment 26-00004 as follows:
A. Chapter 19.81 (Definitions) and Chapter 19.87 (Reasonable Accommodations in Housing) of the Perris Municipal Code is hereby amended as provided in Exhibit 1 attached to this Ordinance (with added text indicated in bold, red font), which is incorporated herein by this reference; which is incorporated herein by this reference.
Section 5. Should any provision, portion, section, subsection, paragraph, sentence, clause, phrase, or word of this Ordinance be rendered or declared invalid by any court of competent jurisdiction, or by reason of any preemptive legislation, the remaining provisions, portions, sections, subsections, paragraphs, sentences, clauses, phrases, and words of this Ordinance shall remain in full force and effect. The City Council hereby declares that it would 386
ORDINANCE NO. 1479 Page 4
have adopted this Ordinance and each provision, portion, section, subsection, paragraph, sentence, clause, phrase, clause or word hereof, irrespective of the fact that any one or more provisions, portions, sections, subsections, paragraphs, sentences, clauses, phrases, or words hereof may be rendered or declared invalid or unconstitutional.
Section 6. The Mayor shall sign this Ordinance and the City Clerk shall certify to the passage and adoption of this Ordinance and shall cause the same to be published and posted pursuant to the provisions of law in this regard. This Ordinance shall take effect thirty days after its adoption.
ADOPTED, SIGNED and APPROVED this 13th day of October, 2026.
Mayor, Michael J. Vargas
ATTEST:
City Clerk, Nancy Salazar
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) §
CITY OF PERRIS )
I, Nancy Salazar, CITY CLERK OF THE CITY OF PERRIS, CALIFORNIA, DO HEREBY CERTIFY that the foregoing Ordinance Number 1479 was duly and regularly adopted by the City Council of the City of Perris at a regular meeting held on the 13th day of October, 2026, by the following called vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
City Clerk, Nancy Salazar
387
ORDINANCE NO. 1479 Page 5
Exhibit A: Zoning Code Text Amendment (Chapter 19.81 – Accessory Dwelling Units and Chapter 19.87 – Reasonable Accomodations in Housing of Title 19 of the Perris Municipal Code)
388
EXHIBIT A
Zoning Code Text Amendment (Chapter
19.81 – Accessory Dwelling Units and
Chapter 19.87 – Reasonable Accomodations
in Housing of Title 19 of the Perris
Municipal Code)
389
01006.0005 2148506.2 6/12/2026
CHAPTER 19.81. ACCESSORY DWELLING UNITS AND JUNIOR ACCESSORY
DWELLING UNITS
Sec. 19.81.010. - Purpose.
The purpose of this section chapter is to establish regulations and procedures for reviewing and permitting accessory dwelling units (ADUs) and junior accessory dwelling units (JADUs) consistent with Chapter 13 of Division 1 of Title 7 of the California Government Code, or any successor statute. In the event of any conflict between the provisions of this chapter and applicable provisions of Chapter 13 of Division 1 of Title 7 of the California Government Code, or any successor statute, the latter shall prevail to the extent of the conflict.
Sec. 19.81.020. - Definitions.
The following words, terms and phrases, when used in this chapter, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning:
Accessory dwelling unit (ADU) is an attached or a detached residential dwelling unit that provides complete independent living facilities for one or more persons and is located on a lot with a proposed or existing primary residence. It shall include permanent provisions for living, sleeping, eating, cooking, and sanitation on the same parcel as the single-family or multifamily dwelling is or will be situated. “ADU” also includes the following: (1) an efficiency unit, as defined in Health and Safety Code Section 17958.1; and (2) a manufactured home, as defined in California Health and Safety Code Section 18007.
Accessory structure is a structure that is accessory and incidental to a dwelling located on the same lotlocated on the same lot as the primary dwelling. An accessory structure may be either attached or detached from the primary dwelling and must have a use that is incidental to the main use. Examples of residential accessory uses include, but are not limited to, storage sheds, garages, studios.
Attached ADU is an accessory dwelling unit created by new construction that is attached to the primary dwelling unit by a shared wall, floor, or ceiling.
Converted existing space ADU is an accessory dwelling unit created by the conversion of existing floor area within either the primary dwelling unit or an accessory structure or an existing multifamily dwelling on the lot, or by total replacement of an existing accessory structure on the lot with an ADU.
Detached ADU is an accessory dwelling unit located on the same parcel and is created by new construction that is detached, or separate from, the primary dwelling unit. Detached ADUs may be constructed on any parcel where single-family, mixed use or multi-family uses are existing or permitted by zoning.
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Efficiency kitchen. An efficiency kitchen shall be defined as an area that shall include a sink, food preparation counter and food storage area. A plug-in food preparation appliance, such as a microwave or hot plate, may also be provided.
Existing building envelope. The existing walls and roofs of a dwelling that separate interior space for exterior space. A space enclosed by at least two walls and a roof is within the existing building envelope.
Junior accessory dwelling unit (JADU) is a unit that is no more than 500 square feet in sizeof interior livable space and contained entirely within a single-family residence. A junior accessory dwelling unit may include separate sanitation facilities, or may share sanitation facilities with the existing structure.
Kitchen. An area that includes a cooking appliance, sink, refrigerator and food preparation and storage area.
Livable Space. A space in a dwelling intended for human habitation, including living, sleeping, eating, cooking, or sanitation.
Ministerial action or ministerial. A permit application reviewed by staff for compliance with specific standards and approved without discretionary review or a hearing.
Minor adjustment. Defined in Perris Municipal Code Section 19.54.020(9), a minor adjustment to specific development standards may be approved by the Ddevelopment Sservices Ddirector.
Multi-family dwelling. An existing building that contains more than one dwelling unit and is located within a zoning district that allows multi-family dwellings.
Primary dwelling unit may be any of the following: an existing single-family dwelling, a proposed single- family dwelling, or an existing multi-family structure.
Proposed dwelling is a dwelling that has applied for a permit and that meets the requirements for permitting.
Public transit is a location, including, but not limited to, a bus stop or train station, where the public may access buses, trains, subways, and other forms of transportation that charge set fares, run on fixed routes and are available to the public.
Tandem parking. When two or more vehicles are parked lined up one behind the other.
Underlying zoning. The zoning district in which a parcel is located on the City of Perris Zoning Map or within a specific plan.
Sec. 19.81.030. - Applicability.
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Any construction, establishment, alteration, enlargement, or modification of an ADU or a JADU shall comply with the requirements of this chapter and the Ccity's building and fire codes. An ADU or JADU that meets the requirements of this chapter shall be deemed:
(1) Consistent with the general plan designation and zoning for the parcel on which the ADU or JADU is located.
(2) Within the allowable density for the parcel on which the ADU or JADU is located.
Sec. 19.81.040. – Review Authority; Application Processing. (a) Permit applications for ADUs and JADUs that meet the applicable development standards described in this chapter and the requirements of the underlying zoning, to the extent consistent with Chapter 13 of Division 1 of Title 7 of the California Government Code, shall be subject to ministerial approval.
(b) The City shall determine whether an application to create or serve an ADU is complete and provide written notice of this determination to the applicant not later than 15 business days after the City received the application.
(c) If the City determines an application is incomplete, the City shall provide the applicant with a list of incomplete items and a description of how the application can be made complete. The list and description shall be provided with the written notice required by subsection (b) above.
(d) After receiving a notice that the application was incomplete, an applicant may cure and address the items that are deemed to be incomplete by the City. (e) In the review of an application submitted pursuant to subsection (d) above, the City shall not require the application to include an item that was not included in the list required by subsection (c) above.
(f) If an applicant submits an application pursuant to subsection (d) above, the City shall determine whether the additional application has remedied all incomplete items listed in the determination issued pursuant to subsection (c) above. This additional application is subject to the timelines and requirements specified in subsection (b) above. (g) If the City does not make a timely determination as required by subsections (b)-(f) above, the application or resubmitted application shall be deemed to be complete for purposes of this section.
(h) The City shall either approve or deny the application to create or serve an ADU within 60 days from the date the City receives a completed application if there is an existing singlefamily or multifamily dwelling on the lot. If the permit application to create or serve an ADU is submitted with a permit application to create a new single-family or multifamily dwelling on the lot, the City may delay approving or denying the permit application for the ADU until the City approves or denies the permit application to create the new singlefamily or multifamily dwelling, but the application to create or serve the ADU shall be 392
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considered without discretionary review or hearing. If the applicant requests a delay, the 60-day time period shall be tolled for the period of the delay. If the City has not approved or denied the completed application within 60 days, the application shall be deemed approved. The City may charge a fee to reimburse it for costs incurred to implement Government Code section 66317, including the costs of adopting or amending any ordinance that provides for the creation of an ADU.
(i) If the City denies an application for an ADU pursuant to subsections (a)-(h), above, the City shall, within the time period described in subsections (a)-(h), above, return in writing a full set of comments to the applicant with a list of items that are defective or deficient and a description of how the application can be remedied by the applicant. (j) No local ordinance, policy, or regulation, other than this Chapter shall be the basis for the delay or denial of a building permit or a use permit under Government Code section 66317. (k) If a permit application is determined to be incomplete under subsections (b)-(g), above, or denied under subsection (h), above, the applicant may appeal that decision in writing to the City Council. The appeal must be filed within 10 calendar days from the day of the City’s notice of the incompleteness determination or denial decision, as applicable, and must be accompanied by the applicable processing fee and a written statement of the reasons for the appeal. The City Council shall provide a final written determination by not later than 60 business days after receipt of the applicant's complete written appeal. (a)(l) Homeowners’ associations, as a third party, cannot influence the City’s decision on an application to create an ADU. Third party reviews of ADU permit applications by a homeowners association or their representatives or agents are prohibited by state law.
Sec. 19.81.050. - Location.
(a) ADUs and JADUs are permitted on sites that have an existing or proposed primary single family dwelling unit and within underlying zoning districts that allow single-family homes or mixed use.
(b) ADUs are permitted on sites that have existing or proposed multi-family residences dwellings and within underlying zoning districts allow multi-family homes dwellings or mixed use homes.
(c) JADUs are not permitted on sites where a portion of the primary dwelling has been converted to an ADU[Reserved].
(d) JADUs are not permitted on sites with multi-family projects.
Sec. 19.81.060. - Land use regulations and development standards for all ADUs and JADUs.
Except as modified by this chapter, all ADUs shall conform to the requirements of the underlying residential zoning district and the zoning code in addition to the standards listed below. 393
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(1) Minimum lot area. There shall be no minimum lot area required to establish an ADU and/or JADU.
(2) Building height.
a. Single Family Detached ADU. Shall not exceed 16 feet above grade, unless the property is within ½ mile walking distance of a major transit stop or a high-quality transit corridor, in which case the Detached ADU shall not exceed 18 feet above grade. An additional two feet in height shall be allowed to accommodate a roof pitch on the ADU that is aligned with the roof pitch of the primary dwelling unit. b. Single Family Attached ADU. Shall not exceed 25 feet above grade or the height limitation of the underlying zoning district applicable to the primary dwelling, whichever is less.
c. A detached ADU on a lot with an existing or proposed multifamily, multistory dwelling. Shall not exceed a height of 18 feet above grade. (3) Setbacks.
a. Front yard. Determined by underlying zone, except as provided in Section
19.81.060(9).
b. Side and rear yards. Minimum four feet or underlying zone requirement whichever is less.
c. When a property is adjacent to an alley, the side or rear yard setback may be reduced with the minor adjustment approval.
(4) Architectural design. The architectural design of the ADU shall be compatible with the architectural style and materials used in the primary dwelling or multi-family project. (5) Exterior entrance. All units must have an entrance separate from the primary dwelling entrance.
(6) Sanitation facilities. A separate bathroom is required with sink, toilet, and shower/bathtub; JADUs may share sanitation facilities with the primary dwelling. (7) Kitchen. A kitchen is required.
(8) Fire sprinklers. For both ADUs and JADUs, fFire sprinklers are required when the primary dwelling unit has fire sprinklers.
(9) Underlying zoning standards. Lot coverage, distance requirements between structures and other standards established by the underlying zoning may be applied so long as application of the requirements does not prohibit the construction of an ADU with a floor area that is 800 square feet of interior livable space or less or with side and rear yard setbacks that are no less than four feet.
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(9)(10) Impact Fees. The City shall not impose any “impact fee,” as defined in Government Code Section 66311.5(c), upon the development of an ADU that has 750 square feet of interior livable space or less or a JADU that has 500 square feet of interior livable space or less. Any impact fees charged for an ADU that has more than 750 square feet of interior livable space shall be charged proportionately in relation to the square footage of the primary dwelling unit.
Sec. 19.81.070. - Specific land use regulations and development standards for single-family— Attached ADUs.
In addition to the development standards outlined in Section 19.81.060, attached ADUs shall comply with the following standards.
(1) Zoning. ADUs are allowed in any zoning district that permits a single-family residence including mixed use zones.
(2) Maximum number of units on a site. No more than (i) one ADU and one JADU meeting the requirements of Government Code Section 66323(a)(1)., No more than one primary dwelling unit, one attached ADU and one JADU are permitted. (3) Minimum unit size. Must have a minimum of 320 square feet of interior livable space floor area but shall not prohibit construction of an efficiency unit pursuant to Government Code Section 66321.
(4) Maximum unit size. The attached ADU shall have an area no more than 50 percent of the floor area in the primary dwelling and shall not exceed the following requirements:
a. Studios and one-bedroom units—850 square feet of interior livable space. b. More than one-bedroom units—1,000 square feet of interior livable space. (5) Parking requirements. Except as provided in Section 19.81.120, one parking space shall be required.
Sec. 19.81.080. - Specific land use regulations and development standards for single-family— Detached ADUs.
In addition to the development standards outlined in Section 19.81.060, detached ADUs shall comply with the following standards.
(1) Zoning. ADUs are allowed in any zoning district that permits a single-family residence. (2) Maximum number of units on a site. No more than (i) one ADU and one JADU meeting the requirements of Government Code Section 66323(a)(1), and (ii) one new construction detached ADU meeting the requirements of Government Code Section 66323(a)(2), are permitted per lot with a proposed or existing single-family dwelling., No more than one primary dwelling unit, one detached ADU and one JADU are permitted.
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(3) Minimum unit size. Must have a minimum of 320 square feet of interior livable space floor area but shall not prohibit construction of an efficiency unit pursuant to Government Code Section 66321.
(4) Maximum unit size. The detached ADU shall not exceed the following requirements:
a. Studios and one-bedroom units—850 square feet of interior livable space. b. More than one-bedroom units—1,200 square feet or 75 percent of the primary dwelling, whichever is less, except if the resulting limit would be less than 1,000 square feet of interior livable space, the limit shall be 1,000 square feet of interior livable space.
(5) Setbacks.
a. Front yard. Determined by underlying zone.
b. Side and rear yards. Minimum four feet or underlying zone, whichever is less. c. When a property is adjacent to an alley, the side or rear yard setback may be reduced with the minor adjustment approval.
(6) Parking requirements. Except as provided in Section 19.81.120, one parking space shall be required.
Sec. 19.81.090. - Specific land use regulations and development standards for single-family— Converted existing space ADUs.
In addition to the development standards outlined in Section 19.81.060, converted existing space ADUs shall comply with the following standards.
(1) Zoning. ADUs and JADUs are allowed in any zoning district that permits a singlefamily residence. (2) Maximum number of units on a site. No more than (i) one ADU and one JADU meeting the requirements of Government Code Section 66323(a)(1), and (ii) one new construction detached ADU meeting the requirements of Government Code Section 66323(a)(2), are permitted per lot with a proposed or existing single-family dwelling.No more than one primary dwelling unit, one converted existing space ADU, one detached ADU, and one JADU.
(3) Minimum unit size. Must have a minimum of 320 square feet of interior livable spacefloor area, but shall not prohibit an efficiency unit pursuant to Government Code Section 66321.
(4) Maximum size. No limit, subject to paragraphs (5)-(6) below. 396
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(5) Building envelope. The converted existing space ADU must be constructed within the existing or proposed floor area of the primary dwelling. (6) Additional floor area. Building envelope may be increased by up to 150 square feet to accommodate a new entrance to the converted existing space ADU. (7) Parking requirements.
a. Primary dwelling. When a garage is converted to an ADU, the parking for the primary dwelling does not have to be replaced.
b. ADU. None.
Sec. 19.81.100. - Specific land use regulations and development standards for JADUs.
In addition to the development standards outlined in section 19.81.060, JADUs shall comply with the following standards.
(1) Zoning. JADUs are allowed in any zoning district that permits a single-family residence.
(2) Maximum number of JADUs on a sitelot. One JADU per residential lot zoned for single-family residences with a single-family residence built, or proposed to be built, on the lot. JADUs are not permitted on other lots.
(3) Minimum unit size. Must have a minimum of 320 square feet floor area. (4)(3) Maximum unit size. The maximum floor area of a JADU shall not exceed 500 square feet of interior livable space.
(5)(4) Building envelope. The JADU must be constructed within the existing or proposed building envelope of the primary dwelling.
(6)(5) Additional floor area. Building envelope may be increased by up to 150 square feet to accommodate a new entrance to the JADU. JADU total area interior livable space shall not exceed the maximum size defined in section 19.81.100(c). (7)(6) Exterior entrance. JADU must have an entrance separate from the primary dwelling entrance. If a JADU does not have a separate bathroom, the JADU shall include a separate entrance from the primary dwelling entrance, with an interior entry to the main living area.
(8)(7) Parking requirements. None.
(9)(8) Kitchen. An efficiency kitchen area is required to be included in the JADU. The efficiency kKitchen area shall include space for food storage and preparation. Cooking appliances may include microwaves or other similar devicesall of the following: (1) a 397
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cooking facility with appliances; and (2) a food preparation counter and storage cabinets that are of reasonable size in relation to the size of the JADU.
Sec. 19.81.110. - Specific land use regulations and development standards for ADUs in multifamily sites.
In addition to the development standards outlined in Section 19.81.060, ADUs on lots with existing or proposed multifamily dwellings shall comply with the following standards. (1) Zoning. ADUs are allowed on residential and mixed use zoned properties with existing or proposed multi-family dwellings.
(2) Maximum number of ADUs.
a. Converted existing space ADUs—At least one ADU and up to 25 percent of the existing multifamily dwelling units, as calculated pursuant to subsection (5) of this Section.
b. Detached ADUs— On a lot with an existing multifamily dwelling, up to eight ADUs, provided that in no case shall the number of detached ADUs exceed the number of existing multifamily dwelling units. On a lot with a proposed multifamily dwelling, no more than two detached ADUs.
c. Attached units—If no detached ADUs or converted existing space ADUs can be built on the site, one attached ADU is permitted.
(3) Minimum unit size.
a. Converted existing space ADUs—Must have a minimum of 320 square feet floor areaof interior livable space but shall not prohibit construction of an efficiency unit pursuant to Government Code Section 66321.
b. Detached ADUs—A minimum of 320 square feet floor areaof interior livable space but shall not prohibit construction of an efficiency unit pursuant to Government Code Section 66321.
c. Attached ADUs—A minimum of 320 square feet floor areaof interior livable space but shall not prohibit construction of an efficiency unit pursuant to Government Code Section 66321.
(4) Location.
a. For converted existing space ADUs, lot must have an existing multifamily dwelling.
For detached or attached ADUs, lot must have an existing or proposed multifamily dwelling; and
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b. Converted existing space ADUs must be located within portions of the structure that are not used as livable space, including but not limited to storage rooms, boiler rooms, passageways, attics, basements, and garages.
(5) Multi-family sites. The following shall apply for purposes of calculating the 25 percent limitation set forth in subparagraph 2(a) of this Section:
a. Previously approved ADUs shall not count towards the existing multi-family dwellings.
b. Fractions shall be rounded down to the next lower number of ADUs, except that at least one ADU shall be permitted; and
c. Multi-family projects approved and built as a single complex shall be considered one lot, regardless of the number of parcels or buildings.
(6) Maximum unit size.
a. Studios and one-bedroom units—850 square feet of interior livable space. b. More than one-bedroom units—1,000 square feet of interior livable space. (7) Parking requirements.
a. Converted existing space units—None.
b. Detached units—One per ADU.
Sec. 19.81.120. - Parking standards.
(a) Parking requirements. Parking shall comply with Section 19.69.020, except as modified by the requirements of this chapter.
(1) Unless the requirement is exempted or waived by other provisions of this chapter, each ADU shall have one designated off-street parking space. (2) Tandem parking and parking within the rear and side yard setbacks are permitted unless findings can be made by city staff demonstrating that the design or location would create dangerous life or fire safety conditions.
(3) When a garage, carport, covered parking structure, or uncovered parking space is demolished in conjunction with the construction of an ADU or converted to an ADU, replacement parking is not required.
(b) Parking not required. ADUs do not need to provide parking when one of the following standards is met.
(1) The property is within ½ mile walking distance of public transit. 399
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(2) The ADU is within an area considered historically significant as defined by the California Register of Historic Resources.
(3) The ADU is part of the primary dwelling or an accessory structure. (4) When on-street parking permits are required but not offered to the occupant of the ADU.
(5) When there is a carshare vehicle located within one block of the ADU.
Sec. 19.81.130. - Operational requirements for all ADUs and JADUs. (a) No separate conveyance.
(1) Single-family ADUs and JADUs. An ADU or JADU may be rented, but no ADU or JADU may be sold or otherwise conveyed separately from the lot and the primary dwelling, except as otherwise permitted by applicable law. (2) ADUs on lots with multifamily dwellings. An ADU may be rented, but no ADU may be sold or otherwise conveyed separately from the lot and the other dwellings, except as otherwise permitted by applicable law.
(b) Short-term Rentals. An ADU or JADU permitted by this chapter shall not be rented for periods of less than 31 days.
(c) Deed restriction and recordation. Prior to issuance of a building and/or grading permit for an ADU and/ora JADU, the property owner shall record a deed restriction with the county recorder's office, the form of which is approved by the City Attorney. This deed restriction shall run with the land and remain in effect so long as the ADU and/or JADU remains on the lot.
(a) JADU deed restrictions shall include and describe the following:
a. Prohibition on the sale of the junior accessory dwelling unit separate from the sale of the single-family residence, including a statement that the deed restriction may be enforced against future purchasersseparate conveyance of the JADU except as otherwise permitted by applicable law.
b. Approved size and attributes of the JADU.
c. Restrictions on short-term rentals required by PMC Section 19.81.130(b). d. JADU owner occupancy requirement as defined in Government Code Section 65852.22(a)(2)66333(b). Specifically, if the JADU has shared sanitation facilities with the existing structure, the City requires owner-occupancy in the single family residence in which the JADU will be permitted. The owner may reside in either the remaining portion of the structure or the newly created JADU. Owner-occupancy 400
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is not required if the JADU has separate sanitation facilities, or if the owner is another governmental agency, land trust, or housing organization.
ADU deed restrictions shall include and describe the restrictions on short-term rentals required by PMC Section 19.81.130(a) and Government Code Section 66314(d)(1), except under the limited circumstances described in GC 66341. Deed restrictions shall also include and describe restriction required by PMC Section 19.81.130(b).
Sec. 19.81.140. - Unpermitted ADUs and JADUs.
(a) Notwithstanding any other law, and except as otherwise provided in subsection (b), below, the City shall not deny a permit for an unpermitted ADU or an unpermitted JADU that was constructed before January 1, 2020, due to either of the following:
a. The ADU or JADU is in violation of building standards pursuant to Article 1 (commencing with Section 17960) of Chapter 5 of Part 1.5 of Division 13 of the California Health and Safety Code.
b. The ADU or JADU does not comply with Article 1 or Article 3 (commencing with Section 66333) of Chapter 13 of Division 1 of Title 7 of the California Government Code, as applicable, this Chapter or any other local ordinance regulating ADUs or JADUs.
(b) Notwithstanding subdivision (a), the City may deny a permit for an ADU or JADU subject to subdivision (a) if the City makes a finding that correcting the violation is necessary to comply with the standards specified in Section 17920.3 of the California Health and Safety Code.
(c) This section shall not apply to a building that is deemed substandard pursuant to Section 17920.3 of the California Health and Safety Code.
(d) The City shall inform the public about the provisions of this section through public information resources, including permit checklists and the City's internet website, which shall include both of the following:
a. A checklist of the conditions specified in Section 17920.3 of the California Health and Safety Code that would deem a building substandard. b. Informing homeowners that, before submitting an application for a permit, the homeowner may obtain a confidential third-party code inspection from a licensed contractor to determine the unit's existing condition or potential scope of building improvements before submitting an application for a permit. (e) A homeowner applying for a permit for a previously unpermitted ADU or JADU constructed before January 1, 2020, shall not be required to pay impact fees or connection or capacity charges except when utility infrastructure is required to comply with Section 17920.3 of the California Health and Safety Code and when the fee is authorized by subdivision (e) of California Government Code Section 66311.5. 401
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(f) Subject to subsection (c) above, upon receiving an application to permit a previously unpermitted ADU or JADU constructed before January 1, 2020, an inspector from the City may inspect the unit for compliance with health and safety standards and provide recommendations to comply with health and safety standards necessary to obtain a permit. If the inspector finds noncompliance with health and safety standards, the City shall not penalize an applicant for having the unpermitted ADU or JADU and shall approve necessary permits to correct noncompliance with health and safety standards.
Sec. 19.81.150. – Certificate of Occupancy for Primary Dwelling Required Prior to Issuance of Certificate of Occupancy for ADU; Emergency Exception (a) The City shall not issue a certificate of occupancy for an ADU before the City issues a certificate of occupancy for the primary dwelling.
(b) Notwithstanding subsection (a) above, in the event that Riverside County is subject to a proclamation of a state of emergency made by the Governor on or after February 1, 2025, to the extent required by Government Code Section 66328, the City shall issue a certificate of occupancy for an ADU constructed in the City if both of the following requirements are met, even if the primary dwelling has not yet been issued a certificate of occupancy: (1) The primary dwelling was substantially damaged or destroyed by an event referenced in the state of emergency proclamation issued by the Governor; and (2) the ADU has been issued construction permits and has passed all required inspections.
(c) Subsection (b) above does not apply to an ADU that is attached to the primary dwelling.
CHAPTER 19.87. - REASONABLE ACCOMMODATIONS IN HOUSING
Sec. 19.87.070. - Findings and decision.
(a) Findings. Any decision on an application under this chapter shall be supported by written findings addressing the criteria set forth in this subsection. An application under this chapter for a reasonable accommodation shall be granted if all of the following findings are made:
(1) The housing, which is the subject of the request, will be used by an individual disabled as defined under the Act.
(2) The requested reasonable accommodation is necessary to make specific housing available to an individual with a disability under the Act.
(3) The requested reasonable accommodation would not impose an undue financial or administrative burden on the city.
(4) The requested reasonable accommodation would not require a fundamental alteration in the nature of a city program or law, including, but not limited to, land use and zoning. (5) The requested reasonable accommodation would not constitute a direct threat to the health or safety of others (i.e., a significant risk of bodily harm) nor cause substantial physical damage to the property of others, or such risks can be sufficiently mitigated or eliminated by another 402
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reasonable accommodation, as provided in California Code of Regulations Title 2, Section 12179.
A determination that an accommodation poses a direct threat to the health or safety of others or would cause substantial physical damage to the property of others must be based on an individualized assessment that relies on objective evidence, not on mere speculation or stereotype about the requested accommodation or a particular disability or individuals with disabilities in general. The assessment of whether the specific accommodation in question poses a direct threat to the health or safety of others or would cause substantial physical damage to the property of others must be based on objective evidence, and not unsubstantiated inferences. The evidence must be sufficiently recent as to be credible, and must consider: (i) The nature, duration, and severity of the risk of a direct threat to the health and safety of others or of substantial physical damage to the property of others; (ii) The likelihood that a direct threat to the health or safety of others or substantial physical damage to the property of others will actually occur; and (iii) Whether there are any additional or alternative reasonable accommodations that will eliminate the direct threat to the health or safety of others or substantial physical damage to the property of others. adversely impact surrounding properties or uses.
(6) There are no reasonable alternatives that would provide an equivalent level of benefit without requiring a modification or exception to the city's applicable rules, standards and practices. (b) Conditions of approval. In granting a request for reasonable accommodation, the reviewing authority may impose any conditions of approval deemed reasonable and necessary to ensure that the reasonable accommodation would comply with the findings required by subsection (a) of this section.
(c) Time limit. Improvements for reasonable accommodation granted by the city to a property as provided in this chapter shall run with the rental or lease of the housing unit by the disabled person, and may remain indefinitely. At any time in the future when such improvements are not required, they may be removed by the property owner or housing provider. 403
ATTACHMENT 2
City Council Staff Report without Exhibits –
Dated September 29, 2026
404
MEETING DATE: September 29, 2026
SUBJECT: Consideration to Introduce and Conduct First Reading by Title Only Ordinance No. (next in order) regarding Zoning Code Text Amendment 26-00004 – A city-initiated proposal to amend the Zoning Code (Title 19) of the Perris Municipal Code by updating the Accessory Dwelling Unit regulations in Chapter 19.81 and the Reasonable Accommodations in Housing provisions in Chapter 19.87 for compliance with State law. Applicant: City of Perris.
REQUESTED ACTION: Introduce Ordinance Number (next in order) finding the Project is exempt from the provisions of the CEQA Guidelines, pursuant to Section 15061(b)(3) (Common Sense Exemption) and approving Zoning Code Text Amendment 26-00004 to amend the Perris Municipal Code to update Chapter 19.81 (Accessory Dwelling Units) and 19.87 (Reasonable Accommodations in Housing), based on the findings contained herein.
CONTACT: Kenneth Phung, Director of Development Services
BACKGROUND/ DISCUSSION
On August 19, 2026, the Planning Commission voted 4-0-1 (Jimenez- Absent) to recommend that the City Council approve the Zoning Code Amendment (ZCA) 26-00004 to update Accessory Dwelling Unit regulations in Chapter 19.81 and the Reasonable Accommodations in Housing provisions in Chapter 19.87 to be in compliance with housing regulations recently updated by the State. These updates will enable both the public and City staff to more easily understand what is permitted and the approval process for ADU and JADU additions and expansions, and requests for reasonable accommodations in housing for individuals with disabilities.
PROPOSED AMENDMENT
The proposed amendment updates Chapters 19.81 and 19.87 of the Perris Municipal Code to bring the City's ADU, JADU, and reasonable accommodation regulations into compliance with current State law. The amendments also clarify the City's review process and applicable development and operational requirements.
The proposed amendments generally fall into three categories: 1) update to the terminology and cross-references to reflect the applicable Government Code provisions; 2) establish clearer application procedures, including completeness review, processing deadlines, appeal procedures,
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and deemed approval process; 3) update standards for ADUs and JADUs, including size, deed restrictions, and the permitting of qualifying unpermitted units; and 4) update the findings needed for individuals requesting reasonable accommodation due to disabilities that require deviation from the code upon evidence that it would not create a threat to health and safety, or potential property damage to others.
The amendments preserve the City's ability to apply objective standards permitted by State law, including applicable architectural and site standards, building and fire code requirements, and to ensure that these standards do not preclude ADUs and JADUs protected under State law.
PUBLIC HEARING NOTICE
A Notice of Public Hearing for the City Council meeting was published in the local newspaper as an eight-page ad, in compliance with the Zoning Code's notice requirements for citywide projects. As of the preparation of the staff report, staff has not received any comments regarding this project.
RECOMMENDATION:
The Planning Commission recommends that the City Council find that the project is exempt from the CEQA Guidelines pursuant to Section 15061(b)(3) (Common Sense Exemption) approving Zoning Code Text Amendment 26-00004 to amend Title 19 of the Perris Municipal Code as it can be seen with certainty the proposed amendment will not have a significant effect on the environment, and approve Zoning Code Text Amendment 26-00004 to amend the Zoning Code by updating the Accessory Dwelling Unit regulations in Chapter 19.81 and the Reasonable Accommodations in Housing provisions in Chapter 19.87, based on the findings contained herein.
BUDGET (or FISCAL) IMPACT: Staff time for preparing the staff report is budgeted in the 2026-2027 Development Services Budget.
Prepared by: Rafael Garcia, Principal Planner
Review by: Patricia Brenes, Planning Manager
Attachments:
1. Ordinance No. (Next in Order) exempting the Project from CEQA and amending the Zoning Code, Title 19 of the Perris Municipal Code
2. Planning Commission Staff Report without Exhibits– Dated August 19, 2026
3. Notice of Public Hearing
406
CITY OF PERRIS
CITY COUNCIL
AGENDA SUBMITTAL
10.L
BACKGROUND/DISCUSSION:
MEETING DATE: October 13, 2026
SUBJECT: Consideration to Conduct the Second Reading by Title Only and Adopt Ordinance No. 1480 approving Planned Development (PD) Overlay Zone 22-05152 to apply a PD overlay zone on 13.61 acres currently zoned R-6,000 Single Family Residential Zone to facilitate the construction of a 91-unit single-family residential gated development, located north of Metz Road between McKimball Road and “A” Street.
Applicant: Anthony Arnest, Pacific Communities.
REQUESTED ACTION: Second Reading and Adoption of Ordinance No. 1480 approving Planned Development (PD) Overlay Zone 22-05152, subject to the information contained in the staff report and based on the findings contained herein.
CONTACT: Kenneth Phung, Director of Development Services On September 29, 2026, the City Council voted 5-0 to introduce the first reading of Ordinance No. 1480 to approve Planned Development (PD) Overlay Zone 22-05152 to apply a PD overlay zone on 13.61 acres currently zoned R-6,000 Single Family Residential Zone to facilitate the construction of a 91-unit single-family gated community development located north of Metz Road between McKimball Road and “A” Street. The gated residential development includes amenities such as a clubhouse, a swimming pool and spa, a dog park, and other outdoor recreational amenities throughout the project site.
Concurrently, with the first Reading of Ordinance No. 1480 on September 29, 2026, Resolution No. 6853 was also adopted to approve related Tentative Tract Map 22-05153 (TTM 37907) and Development Plan Review (DPR) 22-00014; and adopt the Final Mitigated Negative Declaration No. 2398 and the Mitigation Monitoring and Reporting Program to facilitate the gated residential development.
RECOMMENDATION:
Staff is recommending adoption of Ordinance No. 1480 approving Planned Development (PD) Overlay 407
BUDGET (or FISCAL) IMPACT:
Zone 22-05152 to apply the PD overlay zone on 13.61 acres currently zoned R-6,000 Single Family Residential Zone to facilitate the residential development. Upon adoption of the Ordinance, the PD Overlay Zone will become effective on November 12, 2026.
There is no fiscal impact associated with this project since all project costs are borne by the applicant.
Prepared By: Patricia Brenes, Planning Manager
Attachments:
1. Ordinance No. 1480 Adopting Planned Development Overlay Zone 22-05152 including Exhibit A Environmental Documents and Exhibit B Final Conditions of Approval.pdf
2. Project Plans (Plot Plan and Building Elevations) – Informational Purpose.pdf
3. City Council Agenda Submittal without Exhibits - Dated September 29, 2026.pdf 408
Attachment 1
Ordinance No. 1480
Adopting Planned Development
Overlay Zone 22-05152 including
Exhibit A Environmental
Documents and Exhibit B Final
Conditions of Approval
409
01006.0005 2194687.1
ORDINANCE NUMBER 1480
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
PERRIS, COUNTY OF RIVERSIDE, STATE OF CALIFORNIA
APPROVING PLANNED DEVELOPMENT OVERLAY (PDO) ZONE
22-05152 TO REZONE THE PACIFIC LANTANA PROJECT AREA
CONSISTING OF 12.8 NET ACRES OF RESIDENTIAL R-6,000 TO
THE RESIDENTIAL R-6,000 PLANNED DEVELOPMENT OVERLAY
ZONE (R-6,000 PDO) TO FACILITATE THE CREATION OF A 91-LOT SUBDIVISION AND CONSTRUCTION OF A 91-UNIT SINGLEFAMILY RESIDENTIAL DEVELOPMENT LOCATED NORTH OF METZ ROAD BETWEEN MCKIMBALL ROAD AND “A” STREET,
BASED UPON THE FINDINGS PROVIDED HEREIN AND SUBJECT
TO CONDITIONS OF APPROVAL.
WHEREAS, the project applicant, Anthony Arnest, on behalf of Pacific Communities Builder, Inc. (“Applicant”) requests to subdivide a 12.8 net acre property, identified as Assessor’s Parcel Numbers 311-030-012 and 311-030-013, located within the Residential R6,000 Zone designation to facilitate the creation of 91 residential lots for the construction of a development consisting of 91 single-family detached residential units located north of Metz Road between McKimball Road and “A” Street, known as the Pacific Lantana project, and requests to have the Planned Development Overlay Zone applied to the development (“Project”); and
WHEREAS, the Applicant submitted an application for a Planned Development Overlay Zone (PD) 22-05152, Tentative Tract Map 22-05153 (TTM 37907), and Development Plan Review (DPR) 22-00014 for consideration of the Project; and WHEREAS, the proposed PD 22-05152, TTM 37907, and DPR 22-00014 are considered a "project" as defined by the California Environmental Quality Act ("CEQA"); and WHEREAS, pursuant to CEQA and State CEQA Guidelines, an Initial Study (“IS”) was prepared for the proposed Project and, based upon review thereof by the City as lead agency, a Notice of Intent to adopt a mitigated negative declaration was published on May 22, 2026, in accordance with CEQA Guidelines Section 15072, and Mitigated Negative Declaration No. 2398 (the “MND”) was prepared for the Project and was publicly reviewed for a thirty (30) day period in accordance with CEQA, from May 22, 2026 through June 22, 2026; and WHEREAS, during the public comment period, five (5) public comments were received.
The public comments received during the public review period did not warrant or result in any “substantial revision,” within the meaning of CEQA Guidelines Section 15073.5, to the MND.
Although not required by CEQA, in the interests of thoroughness and transparency, responses to the public comments received have been prepared and included in the Final MND. No “substantial revision” of the MND has been made in response to the comments or otherwise, and therefore no recirculation is required pursuant to CEQA Guidelines Section 15073.5. Responses to the 410
01006.0005 2194687.1
comments have been added to Appendix H of the Final Mitigated Negative Declaration, and none of the comments raised any environmental concerns that have not been addressed in the Initial Study/Mitigated Negative Declaration. There is no substantial evidence in light of the whole record before the City, including the public comments received, that the project may have a significant effect on the environment which cannot be mitigated or avoided, and therefore no EIR is required pursuant to CEQA Guidelines Section 15073.5; and WHEREAS, the Riverside County Airport Land Use Commission (“ALUC”) conducted a hearing on August 11, 2026, to consider the Project’s consistency with the D (Flight Corridor Buffer) Zone and determined that the Project is consistent with the March Air Reserve Base/Inland Port Airport (MARB/IPA) Land Use Compatibility Plan; and WHEREAS, Chapter 19.59 (Planned Development Overlay Zone) of the Perris Municipal Code (“PMC”) authorizes the City to approve, conditionally approve, or deny requests for a Planned Development Overlay Zone; and
WHEREAS, a duly noticed Planning Commission public hearing was held on July 15, 2026 and September 2, 2026, for the Project, at which time all interested persons were given full opportunity to be heard and to present evidence. Following the hearing, on September 2, 2026, the Planning Commission, by a vote of 4-0 with one abstention, approved Planning Commission Resolution 26-14, recommending adoption of the MND and approval of the Project to the City Council subject to conditions of approval; and
WHEREAS, on September 29, 2026, the City Council conducted a duly noticed public hearing on the Project, at which time all interested persons were given full opportunity to be heard and present evidence; and
WHEREAS, following the hearing, on September 29, 2026, the City Council adopted Resolution No. 6853, adopting the MND with respect to approval of Tentative Tract Map 22- 05153 (TTM 37907) and Development Plan Review (DPR) 22-00014 and approving Tentative Tract Map 22-05153 (TTM 37907) and Development Plan Review (DPR) 22-00014, subject to conditions of approval and contingent upon adoption and effectiveness of this Ordinance; and WHEREAS, prior to taking action, the City Council has heard, been presented with, and/or reviewed all of the information and data that constitutes the administrative record for the abovementioned approvals, including all oral and written evidence presented to the City by members of the public and City staff during all Project meetings and hearings; and WHEREAS, all other legal prerequisites to the adoption of this Ordinance have occurred. 411
01006.0005 2194687.1
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF PERRIS does ordain as follows:
Section 1. Recitals. The above recitals are all true and correct and are incorporated herein by this reference as findings of fact.
Section 2. CEQA Findings. The City Council finds as follows with respect to the IS/MND for the Project (MND 2398) (Exhibit A):
A. The City Council has considered the whole administrative record, including the IS/MND together with the comments received during the public review process and the responses thereto contained in the Final IS/MND The City Council has also considered whether the Project will result in a safety hazard or noise problem for persons using the March Air Reserve Base/Inland Port Airport as well as the Perris Valley Airport or for persons working in the Project area, and finds that it will not. The findings in this Section 2 are made on the basis of the whole administrative record.
B. The IS/MND has been prepared and considered in compliance with CEQA and contains all required contents pursuant to CEQA Guidelines Section 15071.
C. With the imposition of the mitigation measures set forth in the Mitigation Monitoring and Reporting Program (which is included in the Final IS/MND), there is no substantial evidence that the Project will have a significant effect on the environment. Said mitigation measures have been made enforceable conditions on the Project, as they have been included in the Project Conditions of Approval attached hereto as Exhibit B.
D. The IS/MND reflects the independent judgment and analysis of the City as lead agency.
E. The location and custodian of the documents or other material which constitute the record of proceedings upon which the City Council’s decision set forth in this Ordinance is based is as follows: City of Perris Planning Division, 135 N. D St., Perris, CA 92570.
Section 3. Planned Development Overlay Zone 22-05152 Findings. The City Council finds, with respect to PD 22-05152, that:
1. The proposed project is a group of lots having a total area of at least two acres, but not more than 75 acres, and the land on which the planned unit overlay is applied is contiguous and under the development control of the applicant.
The project site is 12.8 net acres in size, which is larger than the two (2) acre minimum and less than the 75-acre maximum. Further, the Project site is contiguous and is under the development control of the Applicant.
2. The proposed mix of land uses is in keeping with the provisions of PMC Section 19.59.030.
The proposed project is larger than two-acres and is not more than 75-acres as required per 412
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the provisions of PMC Section 19.59.030 (Planned Development Overlay Zone, - Qualifications for Eligibility).
3. The proposed project is well designed and will create a superior environment than could otherwise be achieved by strict application of the underlying conventional zone.
The proposed Project creates two open space parcels, including one (1) 9,210 square-foot parcel for a water detention basin and a 29,461 square-foot central open space parcel for general recreation. The Planned Development Overlay Zone allows flexibility from the underlying R-6,000 development standards only to the extent shown in the Project site plan, tentative tract map, development standards table, and conditions of approval.
Specifically, the PD Overlay Zone approval permits residential lot sizes ranging from 3,769 square feet to 6,713 square feet, lot widths ranging from 47 feet to 52 feet, lot depths of approximately 80 feet, and the setback standards proposed in the Project site plan, including an 8-foot front yard setback to the primary building, a 20-foot garage setback, a 5-foot side yard setback, a 6-foot street side yard setback, and a 15-foot rear yard setback.
Nothing less restrictive or more expansive than those approved ranges and standards is permitted by the PD Overlay Zone approval unless further reviewed and approved by the City in accordance with the Perris Municipal Code. Without the application of the PD Overlay Zone, a minimum 6,000 square foot residential lot area requirement would apply, and the aforementioned open space areas would not be preserved or made available to serve the aforementioned purposes. The PD Overlay Zone assures the creation of a Homeowners Association that will be required to maintain these open spaces and recreation areas in perpetuity, thus complying with this requirement. A Condition of Approval has been included requiring recordation of a covenant running with the land to ensure that the aforementioned open space parcels shall be reserved and maintained as open space associated with the Project in perpetuity, which covenant shall not be removed without City Council approval.
4. The project incorporates appropriate amenities necessary to create and maintain a desirable environment for residents and/or employees (e.g., recreation buildings or facilities, guest parking, common area landscaping, enhanced architectural standards, etc.).
The proposed gated community project includes two (2) open space parcels, including one water detention basin and one recreation area for a clubhouse, swimming pool, and spa, a children’s play area/tot-lot, a half basketball court, and a dog park. Project production units (homes) will be designed to meet the standards outlined in the City’s Residential Design Guidelines and will include various architectural enhancements for each product design.
5. The proposed planned development is harmonious with surrounding development and does not create internal incompatibilities due to improper design, allowed land uses, or density/intensity of development.
The Project location is surrounded by existing residential developments and vacant land zoned for future residential development on all sides, which makes this residential Project 413
01006.0005 2194687.1
harmonious with surrounding development. The Project is also internally compatible as a purely single-family detached residential development.
6. The proposed circulation system is adequate to carry the anticipated traffic volume.
The proposed circulation system utilizes existing streets surrounding the Project site including street improvements designed to help with circulation around the site and within the existing neighborhood. The proposed circulation system as described in the Traffic Study, which was reviewed and approved by RK Engineering (traffic consultant) on July 8, 2022, concluded that the proposed street improvements will be adequate to carry the anticipated traffic volume. Furthermore, primary access to the site will be provided from “A” Street, and secondary access will be provided from McKimball Road for egress and fire access only. An interior ring-road system that parallels the perimeter streets and two (2) interior streets are provided for access to each lot within the subdivision.
7. The existing or proposed public infrastructure is suitable to meet the needs of the planned development, and does not create capacity issues in other areas of the community.
The proposed Project, with the conditions of approval, includes extending all improvements and associated services required for the property's development and expanding roadway widths necessary to improve public infrastructure. Additionally, necessary street improvements to both “A” Street and McKimball Road are included in the Conditions of Approval. Thus, the public infrastructure is suitable for meeting the needs of the planned development.
8. The proposed use at the particular location is necessary and desirable to provide a service or facility which will contribute to the general well-being of the neighborhood and to the community.
The proposed residential single-family detached development will provide additional infrastructure to the area, including widening of streets, installation of sidewalks, and additional drainage infrastructure that will improve and contribute to the general wellbeing of the neighborhood and nearby community.
9. The proposed mix of land uses and design of development will not be detrimental to the health, safety or general welfare of persons residing or working in the vicinity, or injurious to property or improvements in the vicinity.
The proposed residential single-family detached development is compatible with the surrounding land-uses and is surrounded on three sides by existing and under construction single-family dwellings, and is designed to be compatible with the surrounding uses with respect to setbacks, height and superior residential design of both the overall project and the individual homes, thus the project will not be detrimental to the health, safety and welfare of persons residing and working within the vicinity.
10. The granting of this permit will not adversely affect the public welfare and will be 414
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consistent with the city's general plan, and any other relevant plans of any governmental agency.
The project is located within Planning Area 7 (Westside Residential) of the City’s General Plan, and as proposed, the development will be consistent with the City’s General Plan of Residential (R6,000) with respect to density, height, setbacks and other development standards, and as conditioned, will not adversely affect the public welfare.
Section 4. Adoption of MND for PDO 22-05152. Based upon the foregoing and the entire administrative record including all oral and written statements and reports presented by City staff and members of the public, including, but not limited to, all such statements and reports (including all attachments and exhibits) presented at its public hearing on September 29, 2026, the City Council adopts Mitigated Negative Declaration No. 2398 and the included MMRP, attached hereto as Exhibit A and incorporated herein by this reference, for Planned Development Overlay (PDO) 22-05152.
Section 5.Approval of PDO 22-05152. Based upon the foregoing and all oral and written statements and reports presented by City staff and members of the public, including but not limited to such statements and reports (including all attachments and exhibits) presented at the City Council’s public hearing on September 29, 2026, the City Council hereby approves Planned Development Overlay (PDO) 22-05152, subject to the Conditions of Approval attached to this Ordinance as Exhibit B and incorporated herein by this reference.
Section 6. Severability. If any subsection, subdivision, paragraph, sentence, clause or phrase of this Ordinance or any part thereof is for any reason held to be unconstitutional or otherwise unenforceable, such decision shall not affect the validity of the remaining portion of this Ordinance or any part thereof. The City Council hereby declare that they would have passed each subsection, subdivision, paragraph, sentence, clause, or phrase thereof, irrespective of the fact that any one or more subsection, subdivision, paragraph, sentence, clause, or phrase be declared unconstitutional or otherwise unenforceable.
Section 7. Effective Date. This Ordinance shall take effect 30 days after its adoption.
Section 8. Certification. The Mayor shall sign this Ordinance and the City Clerk shall certify to the passage and adoption of this Ordinance and shall cause the same to be published and posted pursuant to the provisions of law in this regard.
ADOPTED, SIGNED, and APPROVED this 13th day of October 2026.
Mayor, Michael M. Vargas
ATTEST:
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01006.0005 2194687.1
City Clerk, Nancy Salazar
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) §
CITY OF PERRIS )
I, Nancy Salazar, CITY CLERK OF THE CITY OF PERRIS, CALIFORNIA, DO HEREBY CERTIFY that the foregoing Ordinance Number 1480 was duly and regularly adopted by the City Council of the City of Perris at a regular meeting held on the 13th day of October 2026, by the following called vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
____________________________________
City Clerk, Nancy Salazar
Exhibits: A. Mitigated Negative Declaration No. 2398 and Mitigation Monitoring and Reporting Program
Due to the size of the files, the documents are available online at:
https://www.cityofperris.org/departments/developmentservices/planning/environmental-documents-for-public-review/-folder462#docan1206_1313_479 B. Final Conditions of Approval (Planning, Fire, Engineering, Public Works, Community Services, and Building & Safety).
416
Exhibit A
Mitigated Negative Declaration No. 2398
and Mitigation Monitoring and Reporting
Program
Due to the size of the files, the documents
are available online at:
https://www.cityofperris.org/departments/
developmentservices/planning/environmentaldocuments-for-public-review/-folder462#docan1206_1313_479 417
Exhibit B
Final Conditions of Approval
(Planning, Fire, Engineering, Public Works,
Community Services, and Building & Safety)
418
CITY OF PERRIS
DEVELOPMENT SERVICES DEPARTMENT
PLANNING DIVISION
FINAL CONDITIONS OF APPROVAL
Planned Development Overlay (PDO) 22-05152,
Tentative Tract Map 22-05153 (TPM-37907); and
Development Plan Review (DPR) 22-00014 October 13, 2026 PROJECT: Planned Development (PD) Overlay Zone 22-05152, Tentative Tract Map 22-05153 (TTM 37907), Development Plan Review 22-00014 (Continued from the July 15, 2026 meeting) – A proposal to consider the following entitlements to facilitate a gated residential development on 12.8 acres, located north of Metz Road between McKimball Road and “A” Street:
1) Planned Development Overlay Zone to allow flexibility from the R-6,000 Single Family Residential development standards;
2) Tentative Tract Map to subdivide 12.8 acres into 91 residential lots; and 3) Development Plan Review for review of the site plan and building elevations. • GENERAL CONDITIONS:
1. Mitigation Monitoring Program. The project shall fully comply with all provisions of the adopted Mitigation Monitoring and Reporting Program (MMRP) for the Initial Study/Mitigated Negative Declaration No. 2398, which shall be implemented in accordance with the listed timeline, reporting, and monitoring intervals.
2. Tentative Tract Map (TTM) 22-05153 (TTM 37907). There is a 24-month time limit for satisfying the conditions and recording the map after the City Council approval. A maximum of six (6) subsequent one-year time extensions may be granted by the City Council upon request by the applicant. A written request for an extension of time shall be submitted to the Planning Division at least 30 days before the expiration of the map.
3. Approval Period for Planned Development Overlay (DP) Overlay Zone 22-05152 and Development Plan Review 22-00014. Planned Development Overlay and Development Plan Review related to an implementing subdivision may be granted time extensions by the City Council up to a total of six (6) years beyond the original approval expiration date before the issuance of any building permits. Once a building permit has been issued, the Planned Residential Development will be considered vested, and time extensions will no longer be required. A written request for an extension of time shall be submitted to the Planning Division at least 30 days before the expiration date.