Pico Rivera City Council
June 14, 2022

12-inch valve and fabrication of a six (6) inch steel pipeline for company fire protection.

The work was completed overnight, and all work was completed per City specifications.

Due to the need for continued water service and fire protection, the Interim Public Works Director, in accordance with the Municipal Code Section 3.48.110, declared a public emergency, which allowed the work to be performed without formal bidding procedures.

Staff solicited informal bids for the emergency repairs of damaged pipeline, concrete, and asphalt. The City received only one bid as follows:

Contractor Slauson/Industry Crossway Drive
Doty Brothers Construction $50,887.04 $16,448.67
Doreck Construction Non-Responsive Unavailable
Dominguez Engineering Unavailable Unavailable
Gentry Brothers Non-Responsive Unavailable
Construction on Slauson Avenue and Industry Road began on February 12, 2022 and was completed March 7, 2022. Construction at 8101 Rosemead Boulevard started March 22, 2022 and was competed March 23, 2022. These projects were managed and inspected by PRWA staff in the Water Operations Division.

Conclusion:

Due to the immediate attention required to continue providing water services and fire protection, City staff recommends Council confirm the action of the Interim Public Works Director and authorize payment to Doty Brothers Construction in the amount of $67,336 for the emergency work completed.

Steve Carmona
SC:TR:AR:ll
Enclosures: 1) Maintenance Services Agreement/Exhibit A, B, C, and D 2) Emergency Repairs without bids
ENCLOSURE 1
AGREEMENT NO. _____

MAINTENANCE SERVICES AGREEMENT BETWEEN
THE CITY OF PICO RIVERA AND DOTY BROS. CONSTRUCTION CO.

THIS MAINTENANCE SERVICES AGREEMENT (“Agreement”) is made and entered into as of January 20, 2022, by and between the CITY OF PICO RIVERA, a California municipal corporation (“City”) and Doty Bros. Construction Co, a Corporation (“Contractor”). Contractor’s license number is 273024 (Class A, C10, C12, C16, C42) [specify license type]; Contractor’s DIR registration number is 1000000977.

In consideration of the mutual covenants hereinafter set forth, the parties hereto agree as follows:

1. Scope of Services. Contractor shall perform the work and provide all labor, materials, equipment and services in a good and workmanlike manner for the project identified as Leak repairs on 12 inch AC line and concrete and asphalt repairs at Industry Rd and Slauson Avenue and Slauson Ave and Crossway Rd (“Project”), as described in this Agreement, the Scope of Work attached hereto as Exhibit A, and incorporated herein by this reference, and Contractor’s Proposal dated February 15, 2022, a copy of which is attached hereto as Exhibit B and incorporated herein by this reference. In the event of any conflict between the terms of this Agreement and the incorporated documents, the terms of this Agreement shall control.

2. Extra Work. Extra work, when ordered in writing by the Director of Public Works and accepted by Contractor, shall be paid for in accordance with the terms of the written work order. Payment for extra work will be made at the unit price or lump sum previously agreed upon in writing between Contractor and the Director of Public Works. All extra work shall be adjusted daily upon the report sheet furnished by Contractor, prepared by the Director of Public Works, and signed by both parties; and the daily report shall be considered thereafter the true records of extra work done.

3. Term. Contractor shall commence work within 1 day after the City gives Contractor written Notice to Proceed. All work shall be completed for acceptance within 48 hours following the delivery of the Notice to Proceed. After issuance of the Notice to Proceed, the City may, at any time and without cause, terminate or suspend the work, or any portion of it, for a reasonable period of time by giving at least 72 hours advance written notice to the Contractor. This Agreement shall become effective on the date first set forth above and shall remain in effect until the tasks described herein are completed to City’s approval, but in no event later than June 30, 2022, unless sooner terminated pursuant to Section 12 or extend by written amendment pursuant Section 35 of this Agreement.

4. Time of Performance.

A. Contractor will not perform any work under this Agreement until:
1) Contractor furnishes proof of insurance as required under Section 14 of this Agreement; and
19a
Maintenance Services Agreement No. ____
DOTY BROS. CONSTRUCTION CO.

2) City gives Contractor a written notice to proceed.

B. Should Contractor begin work in advance of receiving written authorization to proceed, any such professional services are at Contractor’s own risk.

5. Time. Time is of the essence in this Agreement.

6. Force Majeure. Neither City nor Contractor shall be responsible for delays in performance under this Agreement due to causes beyond its control, including but not limited to acts of God, acts of public enemies, acts of the Government, fires, floods or other casualty, epidemics, earthquakes, labor stoppages or slowdowns, freight embargoes, unusually severe weather, and supplier delays due to such causes. Neither economic nor market conditions nor the financial condition of either party shall be considered a cause to excuse delay pursuant to this Section. Each party shall notify the other promptly in writing of each such excusable delay, its cause and its expected delay, and shall upon request update such notice.

7. Compensation. In consideration of the services rendered hereunder, City shall pay Contractor a fee not to exceed Sixty Seven Thousand -Three Hundred Thirty Five Dollars and Seventy One Cents ($67,335.71), in accordance with the prices as submitted in Exhibit B.

8. Payments. Contractor shall submit to City an invoice on a monthly basis for the services performed pursuant to this Agreement. Each invoice shall itemize the services rendered during the billing period, hourly rates charged, if applicable, and the amount due. City shall review each invoice and notify Contractor in writing within ten business days of receipt of any disputed invoice amounts.

City shall make payments within 30 days after receipt of an undisputed and properly submitted payment request from Contractor. City shall return to Contractor any payment request determined not to be a proper payment request as soon as practicable, but not later than seven days after receipt, and shall explain in writing the reason(s) why the payment request is not proper.

9. Taxes. Contractor shall calculate payment for all sales, unemployment, and other taxes imposed by local, State of California and federal law. These payments are included in the total amounts in Exhibit B.

10. Audit. City or its representative shall have the option of inspecting and/or auditing all records and other written materials used by Contractor in preparing its billings to City as a condition precedent to any payment to Contractor. Contractor will promptly furnish documents requested by City. Additionally, Contractor shall be subject to State Auditor examination and audit at the request of City or as part of any audit of City, for a period of three years after final payment under this Agreement.

Maintenance Services Agreement No. ____
DOTY BROS. CONSTRUCTION CO.

11. Unresolved Disputes. In the event of any dispute or controversy with City over any matter whatsoever, Contractor shall not cause any delay or cessation in or of work, but shall proceed with the performance of the work in dispute. Contractor shall retain any and all rights provided that pertain to the resolution of disputes and protests between the parties. The Disputed Work will be categorized as an “unresolved dispute” and payment, if any, shall be as later determined by mutual agreement or a court of law. The Contractor shall keep accurate, detailed records of all Disputed Work, claims and other disputed matters.

All claims arising out of or related to this Agreement, and the consideration and payment of such clams, are subject to the Government Claims Act (Government Code Section 810 et seq.) with regard to filing claims. All such claims are also subject to Public Contract Code Section 9204 and Public Contract Code Section 20104 et seq. (Article 1.5), where applicable. This Agreement hereby incorporates those provisions as though fully set forth herein.

Thus, the Contractor or any Subcontractor must file a claim in accordance with the Government Claims Act as a prerequisite to filing a construction claim in compliance with Section 904 and Article 1.5 (if applicable), and must then adhere to Article 1.5 and Section 9204, as applicable.

12. Termination. Contractor acknowledges and accepts that this Agreement is made pursuant to the City’s emergency procurement authority under Pico Rivera Municipal Code Section 3.48.110 and Public Contract Code 22050. As such, the City may terminate this Agreement at any time with or without cause in accordance with the above referenced emergency procurement authority with three (3) days written notice to Contractor. In the event of termination without fault of Contractor, City shall pay Contractor for all services satisfactorily rendered prior to date of termination, and such payment shall be in full satisfaction of all services rendered hereunder.

If at any time the Contractor is determined to be in material breach of the Contract, a Notice of Potential Breach of Contract shall be prepared by the City, and will be served upon the Contractor and its sureties. If the Contractor continues to neglect or refuses to comply with the Contract or with the Notice of Potential Breach of Contract to the satisfaction of the City within the time specified in such Notice, the City shall have the authority to terminate the Contract for this Project.

In the event that City elects to waive its remedies for any breach by Contractor of any covenant, term or condition of this Contract, such waiver by City shall not limit City’s remedies for any succeeding breach of that or of any other term, covenant, or condition of the Contract.

13. Indemnification.

A. Indemnities for Third Party Claims.

Maintenance Services Agreement No. ____
DOTY BROS. CONSTRUCTION CO.

1) To the fullest extent permitted by law, Contractor shall, at its sole cost and expense, defend, hold harmless and indemnify City and its elected officials, officers, attorneys, agents, employees, designated volunteers, successors, assigns and those City agents serving as independent contractors in the role of City officials (collectively “Indemnitees”), from and against any and all damages, costs, expenses, liabilities, claims, demands, causes of action, proceedings, expenses, judgments, penalties, liens, and losses of any nature whatsoever, including fees of accountants, attorneys, or other professionals and all costs associated therewith and the payment of all consequential damages (collectively “Liabilities”), in law or equity, whether actual, alleged or threatened, which arise out of, are claimed to arise out of, pertain to, or relate to the acts or omissions of Contractor, its officers, agents, servants, employees, subcontractors, materialmen, contractors or their officers, agents, servants or employees (or any entity or individual that Contractor shall bear the legal liability thereof) in the performance of this Agreement, including the Indemnitees’ active or passive negligence, except for Liabilities arising from the sole negligence or willful misconduct of the Indemnitees, as determined by or court decision or by the agreement of the Parties. Contractor shall defend the Indemnitees in any action or actions filed in connection with any Liabilities with counsel of the Indemnitees’ choice, and shall pay all costs and expenses, including all attorneys’ fees and experts’ costs actually incurred in connection with such defense. Contractor shall reimburse the Indemnitees for any and all legal expenses and costs incurred by Indemnitees in connection therewith.
2) Contractor shall pay all required taxes on amounts paid to Contractor under this Agreement, and indemnify and hold City harmless from any and all taxes, assessments, penalties, and interest asserted against City by reason of the independent contractor relationship created by this Agreement. Contractor shall fully comply with the workers’ compensation law regarding Contractor and Contractor’s employees.

Contractor shall indemnify and hold City harmless from any failure of Contractor to comply with applicable workers’ compensation laws. City may offset against the amount of any fees due to Contractor under this Agreement any amount due to City from Contractor as a result of Contractor’s failure to promptly pay to City any reimbursement or indemnification arising under this subparagraph A.2.
3) Contractor shall obtain executed indemnity agreements with provisions identical to those in this Section 13 from each and every subcontractor or any other person or entity involved by, for, with or on behalf of Contractor in the performance of this Agreement. If Contractor fails to obtain such indemnity obligations, Contractor shall be fully responsible and indemnify, hold harmless and defend the Indemnitees from and against any and all Liabilities at law or in equity, whether actual, alleged or threatened, which arise out of, are claimed to arise out of, pertain to, or relate to the acts or omissions of Contractor’s subcontractor, its officers, agents, servants, employees, subcontractors, materialmen, contractors or their officers, agents, servants or employees (or any entity or individual that Contractor’s subcontractor shall bear the legal liability thereof) in the performance of this Agreement, including the Indemnitees’ active or passive negligence, except for Liabilities arising from the sole negligence or willful Maintenance Services Agreement No. ____
DOTY BROS. CONSTRUCTION CO.

misconduct of the Indemnitees, as determined by court decision or by the agreement of the Parties.

B. Workers’ Compensation Acts not Limiting. Contractor’s indemnifications and obligations under this Section 13, or any other provision of this Agreement, shall not be limited by the provisions of any workers’ compensation act or similar act. Contractor expressly waives its statutory immunity under such statutes or laws as to City, its officers, agents, employees and volunteers.

C. Insurance Requirements not Limiting. City does not, and shall not, waive any rights that it may possess against Contractor because of the acceptance by City, or the deposit with City, of any insurance policy or certificate required pursuant to this Agreement. The indemnities in this Section 13 shall apply regardless of whether or not any insurance policies are determined to be applicable to the Liabilities, tax, assessment, penalty or interest asserted against City.

D. Survival of Terms. Contractor’s indemnifications and obligations under this Section 13 shall survive the expiration or termination of this Agreement.

E. Nonwaiver of Rights. Indemnities do not and shall not waive any rights that they may possess against the Contractor because the acceptance by the City, or the deposit with the City, of any insurance policy or certificate required pursuant to this Agreement. The indemnity provision is effective regardless of any prior, concurrent, or subsequent active or passive negligence by Indemnitees and shall operate to fully indemnify against any such negligence.

F. Waiver of Right of Subrogation. Contractor, on behalf of itself and all parties claiming under or through it, hereby waives all rights of subrogation and contribution against the Indemnitees, while acting within the scope of their duties, from all Claims arising out of or incident to the activities or operations performed by or on behalf of the Contractor regardless of any prior, concurrent or subsequent active or passive negligence by Indemnities.

14. Insurance Requirements for City of Pico Rivera Public Works Contract.

A. Minimum Scope and Limits of Insurance. Contractor shall procure and at all times during the term of this Agreement carry, maintain, and keep in full force and effect, insurance as follows:
1) Commercial General Liability Insurance with a minimum limit of $2,000,000.00 per occurrence for bodily injury, personal injury and property damage and a general aggregate limit of $3,000,000.00 per project or location. If Contractor is a limited liability company, the commercial general liability coverage shall be amended so that Contractor and its managers, affiliates, employees, agents and other persons necessary or incidental to its operation are insureds.

Maintenance Services Agreement No. ____
DOTY BROS. CONSTRUCTION CO.

2) Automobile Liability Insurance for any owned, non-owned or hired vehicle used in connection with the performance of this Agreement with a combined single limit of $1,000,000.00 per accident for bodily injury and property damage. If Contractor does not use any owned, non-owned or hired vehicles in the performance of Services under this Agreement, Contractor shall obtain a non-owned auto endorsement to the Commercial General Liability policy required under subparagraph A.1) of this Section 14. 3) Workers’ Compensation Insurance as required by the State of California and Employer’s Liability Insurance with a minimum limit of $1,000,000.00 per accident for bodily injury or disease. If Contractor has no employees while performing Services under this Agreement, a workers’ compensation policy is not required, but Contractor shall execute a declaration that it has no employees.

B. Acceptability of Insurers. The insurance policies required under this Section 15 shall be issued by an insurer admitted to write insurance in the State of California with a rating of A:VII or better in the latest edition of the A.M. Best Insurance Rating Guide.

Self-insurance shall not be considered to comply with the insurance requirements under this Section 14.

C. Additional Insured. The City, its elected and appointed officials, officers, employees, attorneys, agents, designated volunteers, and independent contractors in the role of City officials, shall be the insured or named as additional insureds covering the Project, regardless of any inconsistent statement in the policy or an subsequent endorsement, whether liability is attributable to the Contractor or the City. The commercial general and automobile liability policies shall contain an endorsement naming City, its officers, employees, agents and volunteers as additional insureds.

D. Primary and Non-Contributing. The insurance policies required under this Section 14 shall apply on a primary non-contributing basis in relation to any other insurance or self-insurance available to City. Any insurance or self-insurance maintained by City, its officers, employees, agents or volunteers, shall be in excess of Contractor’s insurance and shall not contribute with it.

E. Contractor’s Waiver of Subrogation. The insurance policies required under this Section 14 shall not prohibit Contractor and Contractor’s employees, agents or subcontractors from waiving the right of subrogation prior to a loss. Contractor hereby waives all rights of subrogation against City.

F. Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions must be declared to and approved by City. At City’s option, Contractor shall either reduce or eliminate the deductibles or self-insured retentions with respect to City, or Contractor shall procure a bond guaranteeing payment of losses and expenses.

G. Cancellations or Modifications to Coverage. Contractor shall not cancel, reduce or otherwise modify the insurance policies required by this Section 14 during the term of this Agreement. The commercial general and automobile liability policies required Maintenance Services Agreement No. ____
DOTY BROS. CONSTRUCTION CO.

under this Agreement shall be endorsed to state that should the issuing insurer cancel the policy before the expiration date, the issuing insurer will endeavor to mail 30 days’ prior written notice to City. If any insurance policy required under this Section 14 is canceled or reduced in coverage or limits, Contractor shall, within two business days of notice from the insurer, phone, fax or notify City via certified mail, return receipt requested, of the cancellation of or changes to the policy.

H. City Remedy for Noncompliance. If Contractor does not maintain the policies of insurance required under this Section 14 in full force and effect during the term of this Agreement, or in the event any of Contractor’s policies do not comply with the requirements under this Section 14, City may either immediately terminate this Agreement or, if insurance is available at a reasonable cost, City may, but has no duty to, take out the necessary insurance and pay, at Contractor’s expense, the premium thereon.

Contractor shall promptly reimburse City for any premium paid by City or City may withhold amounts sufficient to pay the premiums from payments due to Contractor.

I. Evidence of Insurance. Prior to the performance of Services under this Agreement, Contractor shall furnish City’s Risk Manager with a certificate or certificates of insurance and all original endorsements evidencing and effecting the coverages required under this Section 14. The endorsements are subject to City’s approval.

Contractor may provide complete, certified copies of all required insurance policies to City. Contractor shall maintain current insurance certificates and endorsements on file with City’s Risk Manager at all times during the term of this Agreement. Contractor shall provide proof to City’s Risk Manager that insurance policies expiring during the term of this Agreement have been renewed or replaced with other policies providing at least the same coverage. Contractor shall furnish such proof at least two weeks prior to the expiration of the coverages.

The endorsements are to be signed by a person authorized by that insurer to bind coverage on its behalf. The endorsements must specifically name the CITY OF PICO RIVERA and its elected and appointed officials, officers, employees, attorneys, agents, designated volunteers, and independent contractors in the role of City officials as insureds or additional insureds. The City reserves the right to require complete, certified copies of all required insurance policies at any time.

J. Indemnity Requirements not Limiting. Procurement of insurance by Contractor shall not be construed as a limitation of Contractor’s liability or as full performance of Contractor’s duty to indemnify City under Section 13 of this Agreement.

K. Subcontractor Insurance Requirements. Contractor shall require each of its subcontractors that perform Services under this Agreement to maintain insurance coverage that meets all of the requirements of this Section 14.

L. Replacement Insurance. Contractor agrees that it will not cancel, reduce or otherwise modify the insurance coverage. Contractor agrees that if it does not keep the required insurance in full force and effect, and such insurance is available at a reasonable Maintenance Services Agreement No. ____
DOTY BROS. CONSTRUCTION CO.

cost, the City may take out the necessary insurance and pay the premium thereon, and the repayment thereof shall be deemed an obligation of the Contractor and the cost of such insurance may be deducted, at the option of the City, from payments due to the Contractor. This shall be in addition to all other legal options available to the City to enforce the insurance requirements.

M. Subcontractors. Contractor shall ensure all Subcontractors and their employees are listed as additional insureds on all of the Contractor’s insurance.

15. Antitrust Claims. Contractor offers and agrees to assign to 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. Section 15) or under the Cartwright Act (Chapter 2 (commencing with Section 16700) of Part 2 of Division 7 of the California Business and Professions Code) arising from purchases of goods, services, or materials pursuant to this Agreement. This assignment shall be made and become effective at the time City tenders final payment to Contractor without further acknowledgment by the parties.

16. Familiarity with Work.

A. By executing this Agreement, Contractor represents that it has 1) Thoroughly investigated and considered the scope of services to be performed;
2) Carefully considered how the services should be performed; and 3) Understands the facilities, difficulties, and restrictions attending performance of the services under this Agreement.

B. If services involve work upon any site, Contractor warrants that it has or will investigate the site and is or will be fully acquainted with the conditions there existing, before commencing the services hereunder. Should Contractor discover any latent or unknown conditions that may materially affect the performance of the services, Contractor will immediately inform City of such fact and will not proceed except at Contractor’s own risk until written instructions are received from City.

17. Hazardous Materials and Unknown Conditions. Contractor shall notify City in writing of the discovery of any of the following conditions, without disturbing the condition, as soon as Contractor, or any of Contractor’s subcontractors, agents or employees have knowledge and reporting is possible:

A. The presence of any materials that the Contractor believes is hazardous waste, as defined in Section 25117 of the Health and Safety Code; B. Subsurface or latent physical conditions at the site differing from those indicated in the Scope of Services;
Maintenance Services Agreement No. ____
DOTY BROS. CONSTRUCTION CO.

C. Unknown physical conditions at the site of any unusual nature, different materially from those ordinarily encountered and generally recognized as inherent in work of this character provided for in this Agreement.

Pending determination by City of appropriate action to be taken, Contractor shall provide security measures (e.g., fences) adequate to prevent the hazardous waste or physical conditions from causing bodily injury to any person.

City shall promptly investigate the reported conditions. If City, through its Director of Community Development and Public Works, or his or her designee, and in the exercise of its sole discretion, determines that the conditions do materially differ, or do involve hazardous waste, and will cause a decrease or increase in the Contractor’s cost of, or time required for, performance of any part of the work, then City shall issue a change order.

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

18. Utilities Relocation. City is responsible for removal, relocation, or protection of existing main or trunkline utilities to the extent such utilities were not identified in the Scope of Work. City shall reimburse contractor for any costs incurred in locating, repairing damage not caused by contractor and removing or relocating such unidentified utility facilities, including equipment idled during such work. Contractor shall not be assessed damages for delay arising from the removal or relocation of such unidentified utility facilities.

19. Independent Contractor. Contractor is and shall at all times remain, as to City, a wholly independent contractor. Neither City nor any of its agents shall have control over the conduct of Contractor or any of Contractor’s employees, except as herein set forth; and Contractor is free to dispose of all portions of its time and activities which it is not obligated to devote to City in such a manner and to such persons, firms, or corporations as Contractor wishes except as expressly provided in this Agreement. Contractor shall have no power to incur any debt, obligation, or liability on behalf of City, bind City in any manner, or otherwise act on behalf of City as an agent. Contractor shall not, at any time or in any manner, represent that it or any of its agents, servants or employees, are in any manner agents, servants or employees of City. Contractor agrees to pay all required taxes on amounts paid to Contractor under this Agreement, and to indemnify and hold City harmless from any and all taxes, assessments, penalties, and interest asserted against City by reason of the independent contractor relationship created by this Agreement. Contractor shall fully comply with the workers’ compensation law regarding Contractor and its employees. Contractor further agrees to indemnify and hold City harmless from any failure of Contractor to comply with applicable workers’ compensation Maintenance Services Agreement No. ____
DOTY BROS. CONSTRUCTION CO.

laws. City shall have the right to offset against the amount of any compensation due to Contractor under this Agreement any amount due to City from Contractor as a result of its failure to promptly pay to City any reimbursement or indemnification arising under this Section.

20. Prevailing Wages. City and Contractor acknowledge that this project is a public work to which prevailing wages apply. Contractor shall comply in all respects with all applicable provisions of the California Labor Code, including those set forth in Exhibit C, attached hereto and incorporated herein by this reference. The City has entered into the “Community Workforce Agreement” (“CWA”) with the Los Angeles and Orange Counties Building and Construction Trades Council attached as Exhibit Aand incorported herein by this reference, which requires the payment of prevailing wages on general public works contracts of greater than $250,000 and specialty contracts of greater than $50,000 and certain labor compliance provisions.

21. Workers’ Compensation Insurance. California Labor Code Sections 1860 and 3700 provide that every contractor will be required to secure the payment of compensation to its employees. In accordance with the provisions of California Labor Code Section 1861, Contractor hereby 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 selfinsurance 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.”

22. Nondiscriminatory Employment. Contractor shall not unlawfully discriminate against any individual based on race, color, religion, nationality, gender, sex, sexual orientation, age or condition of disability. Contractor understands and agrees that it is bound by and will comply with the nondiscrimination mandates of all statutes and local ordinances and regulations.

23. Debarred, Suspended or Ineligible Contractors. Contractor shall not be debarred throughout the duration of this Agreement. Contractor shall not perform work with debarred subcontractors pursuant to California Labor Code Section 1777.1 or 1777.7 or any other federal of State law providing for the debarment of contractors from public works. If the Contractor of any Subcontractor becomes debarred or suspended during the duration of the Project, the Contractor shall immediately notify the City.

24. Compliance with Laws. Contractor shall comply with all applicable federal, state and local laws, ordinances, codes and regulations in force at the time Contractor performs pursuant to this Agreement.

25. Payment Bond. Contractor shall obtain a payment bond in an amount that is not less than the total compensation amount of this Agreement, and nothing in this Maintenance Services Agreement No. ____
DOTY BROS. CONSTRUCTION CO.

Agreement shall be read to excuse this requirement. The Payment Bond shall comply with requirements of Public Contracts Code § 9554 and issued by a California admitted Surety insurer using the forms set forth in the Contract Documents, or such other form approved by the City Attorney and shall remain in effect until expiration of the time within which the California Labor Commissioner may serve a civil wage and penalty assessment against the principal, any of its Subcontractors, or both the principal and its Subcontractors pursuant to Labor Code Section 1741, and until the expiration of the time within which a joint labor management committee may commence an action against the principal, any of its Subcontractors, or both the principal and its Subcontractors pursuant to Labor Code Section 1771.2. The required form entitled Payment Bond (Labor and Materials) is attached hereto as Exhibit D and incorporated herein by this reference.

26. Substitution of Securities. Pursuant to Public Contracts Code Section 22300, Contractor shall be allowed to substitute securities for any moneys withheld by the City to ensure performance under the Agreement, unless, federal regulations or policies, or both, do not allow the substitution of securities. At the request and expense of the Contractor, securities equivalent to the amount withheld shall be deposited with the City, or with a state or federally chartered bank in this state as the escrow agent, who shall then pay those moneys to the Contractor. Upon satisfactory completion of the Agreement, the securities shall be returned to the Contractor.

27. Contractor’s Representations. Contractor represents, covenants and agrees that:
a) Contractor is licensed, qualified, and capable of furnishing the labor, materials, and expertise necessary to perform the services in accordance with the terms and conditions set forth in this Agreement; b) there are no obligations, commitments, or impediments of any kind that will limit or prevent its full performance under this Agreement; c) there is no litigation pending against Contractor, and Contractor is not the subject of any criminal investigation or proceeding; and d) to Contractor’s actual knowledge, neither Contractor nor its personnel have been convicted of a felony.

28. Conflicts of Interest. Contractor agrees not to accept any employment or representation during the term of this Agreement or within 12 months after completion of the work under this Agreement which is or may likely make Contractor “financially interested,” as provided in Government Code Sections 1090 and 87100, in any decisions made by City on any matter in connection with which Contractor has been retained pursuant to this Agreement.

29. Third Party Claims. City shall have full authority to compromise or otherwise settle any claim relating to this Agreement at any time. City shall timely notify Contractor of the receipt of any third-party claim relating to the Agreement. City shall be entitled to recover its reasonable costs incurred in providing this notice.

30. Non-Assignability; Subcontracting. The experience, knowledge, capability and reputation of Contractor, its principals and employees were a substantial inducement for the City to enter into this Agreement. Contractor shall not assign or transfer any interest in this Agreement nor any part thereof, whether by assignment or novation, without City’s Maintenance Services Agreement No. ____
DOTY BROS. CONSTRUCTION CO.

prior written consent. 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 present ownership and/or control of Contractor. In the event of any such unapproved transfer, including any bankruptcy proceeding, this Agreement shall be void. Any purported assignment without written consent shall be null, void, and of no effect; and Contractor shall hold harmless, defend and indemnify City and its officers, officials, employees, agents and representatives with respect to any claim, demand or action arising from or relating to any unauthorized assignment. No approved transfer shall release the Contractor or any surety of Contractor of any liability hereunder with the express consent of the City.

31. Applicable Law. The validity, interpretation, and performance of this Agreement shall be controlled by and construed under the laws of the State of California, excluding California’s choice of law rules. Venue for any such action relating to this Agreement shall be in the Los Angeles County Superior Court.

32. Attorneys’ Fees and Costs. If either party to this Contract is required to initiate or defend or made a party to any action or proceeding in any way connected with this Contract, 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 attorney's fees. Attorney's fees shall include attorney's fees on any appeal, and in addition a party entitled to attorney's fees shall be entitled to all other reasonable costs for investigating such action, taking depositions and discovery and all other necessary costs the court allows which are incurred in such litigation. All such fees shall be deemed to have accrued on commencement of such action and shall be enforceable whether or not such action is prosecuted to judgment.

33. Titles. The titles used in this Agreement are for convenience only and shall in no way define, limit or describe the scope or intent of this Agreement or any part of it.

34. Authority. The persons executing this Agreement on behalf of Contractor warrants and represents that they have the authority to execute this Agreement on behalf of Contractor and have the authority to bind Contractor to the performance of its obligations hereunder.

35. Integration; Amendment. 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 previous negotiations, arrangements, agreements and understandings, if any, between the Parties, and none shall be used to interpret this Agreement. This Agreement may be amended at any time by the mutual consent of the Parties by an instrument in writing.

36. Incorporation by Reference. All Exhibits attached hereto are incorporated herein by reference. The documents, payment and performance bonds, City insurance requirements, Community Workforce Agreement, together with this written Agreement (and all Exhibits, documents and laws referenced therein), shall constitute the entire Maintenance Services Agreement No. ____
DOTY BROS. CONSTRUCTION CO.

agreement between the parties as to the subject matter of this Agreement. In the event of any conflict between this Agreement and any Exhibit hereto, the provisions of this Agreement shall control.

37. Entire Agreement. This Agreement, including any other documents incorporated herein by specific reference, represents the entire and integrated agreement between City and Contractor. This Agreement supersedes all prior oral or written negotiations, representations or agreements. This Agreement may not be modified or amended, nor any provision or breach waived, except in a writing signed by both parties which expressly refers to this Agreement.

38. Construction. In the event of any asserted ambiguity in, or dispute regarding the interpretation of any matter herein, the interpretation of this Agreement shall not be resolved by any rules of interpretation providing for interpretation against the party who causes the uncertainty to exist or against the party who drafted this Agreement or who drafted that portion of this Agreement.

39. Non-waiver of Terms, Rights and Remedies. Waiver by either party of any one or more of the conditions of performance under this Agreement shall not be a waiver of any other condition of performance under this Agreement. In no event shall the making by City of any payment to Contractor constitute or be construed as a waiver by City of any breach of covenant, or any default which may then exist on the part of Contractor, and the making of any such payment by City shall in no way impair or prejudice any right or remedy available to City with regard to such breach or default.

40. Notice. Except as otherwise required by law, any notice or other communication authorized or required by this Agreement shall be in writing and shall be deemed received on (a) the day of delivery if delivered by hand or overnight courier service during Contractor’s or City’s regular business hours or (b) on the third business day following deposit in the United States mail, postage prepaid, to the addresses listed below, or at such other address as one party may notify the other:

To City:

Terry Rodrigue, P.E.

Interim Public Works Director
City of Pico Rivera
6615 Passons Blvd
Pico Rivera, CA 90660
To Contractor:

Doty Bros. Construction Co.
11232 E. Firestone Blvd.

Norwalk, CA 90650
Maintenance Services Agreement No. ____
DOTY BROS. CONSTRUCTION CO.

The address listed in Exhibit A.

41. Counterparts. This Agreement may be executed in counterpart originals, duplicate originals, or both, each of which is deemed to be an original for all purposes.

42. Severability. If any term or portion of this Agreement is held to be invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions of this Agreement shall continue in full force and effect.

IN WITNESS WHEREOF, the parties hereto have executed the within Agreement the day and year first above written.

CITY OF PICO RIVERA
By: _______________________________
City Manager
ATTEST:

By: ______________________________
City Clerk
APPROVED AS TO FORM:

By: ______________________________
City Attorney

CONTRACTOR
Doty Bros. Construction Co.

By: _______________________________
Printed Name: ______________________
Title: ______________________________
By: _______________________________
Printed Name: ______________________
Title: ______________________________
ENCLOSURE 1
Exhibit A

EXHIBIT A
Scope of Work
ENCLOSURE 1
Exhibit B

EXHIBIT B
Contractor’s Proposal
ENCLOSURE 1
Exhibit C

EXHIBIT C
Terms for Compliance with California Labor Law Requirements

1. Contractor acknowledges that the project as defined in this Agreement between Contractor and City, to which this Agreement to Comply with California Labor Law Requirements is attached and incorporated by reference, is a “public work” as defined in Division 2, Part 7, Chapter 1 (commencing with Section 1720) of the California Labor Code (“Chapter 1”), and that this Agreement is subject to (a) Chapter 1, including without limitation Labor Code Section 1771 and (b) the rules and regulations established by the Director of Industrial Relations (“DIR”) implementing such statutes. Contractor shall perform all work on the project as a public work.

2. California law requires the inclusion of specific Labor Code provisions in certain contracts. The inclusion of such specific provisions below, whether or not required by California law, does not alter the meaning or scope of Section 1 above.

3. Contractor shall be registered with the Department of Industrial Relations in accordance with California Labor Code Section 1725.5, and has provided proof of registration to City prior to the effective date of this Agreement. Contractor shall not perform work with any subcontractor that is not registered with DIR pursuant to Section 1725.5. Contractor and subcontractors shall maintain their registration with the DIR in effect throughout the duration of this Agreement. If Contractor or any subcontractor cease to be registered with DIR at any time during the duration of the project, Contractor shall immediately notify City.

4. Pursuant to Labor Code Section 1771.4, Contractor’s services are subject to compliance monitoring and enforcement by DIR. Contractor shall post job site notices, as prescribed by DIR regulations.

5. Pursuant to Labor Code Section 1773.2, copies of the prevailing rate of per diem wages for each craft, classification, or type of worker needed to perform the Agreement are on file at City Hall and will be made available to any interested party on request.

Contractor acknowledges receipt of a copy of the DIR determination of such prevailing rate of per diem wages, and Contractor shall post such rates at each job site covered by this Agreement.

6. Contractor shall comply with and be bound by the provisions of Labor Code Sections 1774 and 1775 concerning the payment of prevailing rates of wages to workers and the penalties for failure to pay prevailing wages. Contractor shall, as a penalty to the City, forfeit two hundred dollars ($200) for each calendar day, or portion thereof, for each worker paid less than the prevailing rates as determined by the DIR for the work or craft in which the worker is employed for any public work done pursuant to this Agreement by Contractor or by any subcontractor.

7. Contractor shall comply with and be bound by the provisions of Labor Code Section 1776, which requires Contractor and each subcontractor to (1) keep accurate Maintenance Services Agreement No. ____
DOTY BROS. CONSTRUCTION CO.

Exhibit C

payroll records and verify such records in writing under penalty of perjury, as specified in Section 1776, (2) certify and make such payroll records available for inspection as provided by Section 1776, and (3) inform the City of the location of the records. The Contractor has ten days in which to comply subsequent to receipt of a written notice requesting these records, or as a penalty to the City, the Contractor shall forfeit $100.00 for each Day, or portion thereof, for each worker, until strict compliance is effectuated.

8. Contractor shall comply with and be bound by the provisions of Labor Code Sections 1777.5, 1777.6 and 1777.7 and California Administrative Code title 8, section 200 et seq. concerning the employment of apprentices on public works projects.

Contractor shall be responsible for compliance with these aforementioned Sections for all apprenticeable occupations. Prior to commencing work under this Agreement, Contractor shall provide City with a copy of the information submitted to any applicable apprenticeship program. Within 60 days after concluding work pursuant to this Agreement, Contractor and each of its subcontractors shall submit to the City a verified statement of the journeyman and apprentice hours performed under this Agreement.

9. Contractor acknowledges that eight hours labor constitutes a legal day’s work.

Contractor shall comply with and be bound by Labor Code Section 1810. Contractor shall comply with and be bound by the provisions of Labor Code Section 1813 concerning penalties for workers who work excess hours. Contractor shall, as a penalty to the City, forfeit twenty-five dollars ($25) for each worker employed in the performance of this Agreement by Contractor or by any subcontractor for each calendar day during which such worker is required or permitted to work more than eight hours in any one calendar day and 40 hours in any one calendar week in violation of the provisions of Division 2, Part 7, Chapter 1, Article 3 of the Labor Code. Pursuant to Labor Code section 1815, work performed by employees of Contractor in excess of eight hours per day, and 40 hours during any one week shall be permitted upon public work upon compensation for all hours worked in excess of eight hours per day at not less than one and one-half times the basic rate of pay.

10. California Labor Code Sections 1860 and 3700 provide that every employer will be required to secure the payment of compensation to its employees. In accordance with the provisions of California Labor Code Section 1861, Contractor hereby 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 selfinsurance 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.”

11. For every subcontractor who will perform work on the project, Contractor shall be responsible for such subcontractor’s compliance with Chapter 1 and Labor Code Sections 1860 and 3700, and Contractor shall include in the written contract between it and each Maintenance Services Agreement No. ____
DOTY BROS. CONSTRUCTION CO.

Exhibit C

subcontractor a copy of those statutory provisions and a requirement that each subcontractor shall comply with those statutory provisions. Contractor shall be required to take all actions necessary to enforce such contractual provisions and ensure subcontractor’s compliance, including without limitation, conducting a periodic review of the certified payroll records of the subcontractor and 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 failure.

12. To the maximum extent permitted by law, Contractor shall indemnify, hold harmless and defend (at Contractor’s expense with counsel reasonably acceptable to the City) the City, its officials, officers, employees, agents and independent contractors serving in the role of City officials, and volunteers from and against any demand or claim for damages, compensation, fines, penalties or other amounts arising out of or incidental to any acts or omissions listed above by any person or entity (including Contractor, its subcontractors, and each of their officials, officers, employees and agents) in connection with any work undertaken or in connection with the Agreement, including without limitation the payment of all consequential damages, attorneys’ fees, and other related costs and expenses. All duties of Contractor under this Section shall survive termination of the Agreement.

ENCLOSURE 1
Exhibit D

EXHIBIT D

PAYMENT BOND
(LABOR AND MATERIALS)
Bond No. __________
KNOW ALL PERSONS BY THESE PRESENTS that:

WHEREAS the City of PICO RIVERA (“Public Agency”), State of California, has awarded to (“Principal”)
(Name and address of Contractor)
a contract (the “Contract”) for the Work described as follows:

Emergency 12” Water Main Replacement-Industry and Slauson Avenue WHEREAS, under the terms of the Contract, the Principal is required before entering upon the performance of the work, to file a good and sufficient payment bond with the City to secure the claims to which reference is made in Title 3 (commencing with Section 9000) of Part 6 of Division 4 of the Civil Code.

NOW, THEREFORE, we, the undersigned Principal, and
(Name and address of Surety)
(“Surety”) a duly admitted surety insurer under the laws of the State of California, as Surety, are held and firmly bound unto the City and all contractors, subcontractors, laborers, material suppliers, and other persons employed in the performance of the Contract and referred to in Title 3 (commencing with Section 9000) of Part 6 of Division 4 of the Civil Code in the penal sum of ___________________ ($___________), for materials furnished or labor thereon of any kind, or for amounts due under the Unemployment Insurance Act with respect to this work or labor, that the surety will pay the same in an amount not exceeding the amount hereinabove set forth, and also in case suit is brought upon this bond, will pay, in addition to the face amount thereof, costs and reasonable expenses and fees, including reasonable attorneys’ fees, incurred by City in successfully enforcing this obligation, to be awarded and fixed by the court, and to be taxed as costs and to be included in the judgment therein rendered.

It is hereby expressly stipulated and agreed that this Bond shall inure to the benefit of any and all persons, companies, and corporations entitled to file claims under Title 3 (commencing with Section 9000) of Part 6 of Division 4 of the Civil Code, so as to give a right of action to them or their assigns in any suit brought upon this Bond.

Upon expiration of the time within which the California Labor Commissioner may serve a civil wage and penalty assessment against the principal, any of its subcontractors, or both the principal and its subcontractors pursuant to Labor Code Section 1741, and upon expiration of the time within which a joint labor management committee may commence an action against the principal, any of its subcontractors, or both the principal and its subcontractors pursuant to Labor Code Maintenance Services Agreement No. ____
DOTY BROS. CONSTRUCTION CO.

Exhibit D

Section 1771.2, if the condition of this Bond be fully performed, then this obligation shall become null and void, otherwise it shall be and remain in full force and effect.

The Surety hereby stipulates and agrees that no change, extension of time, alteration, or addition to the terms of the Contract or the specifications accompanying the same shall in any manner affect its obligations on this Bond, and it does hereby waive notice of any such change, extension, alteration, or addition.

IN WITNESS WHEREOF, two identical counterparts of this instrument, each of which shall for all purposes be deemed an original hereof, have been duly executed by Principal and Surety, on the date set forth below, the name of each corporate party being hereto affixed and these presents duly signed by its undersigned representative(s) pursuant to authority of its governing body.

Dated:
“Principal”
By:

Its:
“Surety”
By:

Its:
(Seal) (Seal)
Note: This Bond must be executed in duplicate and dated, all signatures must be notarized, and evidence of the authority of any person signing as attorney-in-fact must be attached. IF CONTRACTOR IS A PARTNERSHIP, ALL PARTNERS MUST EXECUTE BOND. DATE OF BOND MUST NOT BE PRIOR TO DATE OF CONTRACT. Surety companies executing Bonds must appear on the Treasury Department’s most current list (Circular 570 as amended) and be authorized to transact business in the State where the project is located.

ENCLOSURE 2
Public Contracts Code (Cost Accounting Act)
22035.
(a) In cases of emergency when repair or replacements are necessary, the governing body may proceed at once to replace or repair any public facility without adopting plans, specifications, strain sheets, or working details, or giving notice for bids to let contracts. The work may be done by day labor under the direction of the governing body, by contractor, or by a combination of the two. (b) In case of an emergency, if notice for bids to let contracts will not be given, the public agency shall comply with Chapter 2.5 (commencing with Section 22050).

CHAPTER 2.5. Emergency Contracting Procedures [22050- 22050.] ( Chapter 2.5 added by Stats. 1994, Ch. 803, Sec. 88. ) 22050.
(a) (1) In the case of an emergency, a public agency, pursuant to a four-fifths vote of its governing body, may repair or replace a public facility, take any directly related and immediate action required by that emergency, and procure the necessary equipment, services, and supplies for those purposes, without giving notice for bids to let contracts.
(2) Before a governing body takes any action pursuant to paragraph (1), it shall make a finding, based on substantial evidence set forth in the minutes of its meeting, that the emergency will not permit a delay resulting from a competitive solicitation for bids, and that the action is necessary to respond to the emergency. (b) (1) The governing body, by a four-fifths vote, may delegate, by resolution or ordinance, to the appropriate county administrative officer, city manager, chief engineer, or other nonelected agency officer, the authority to order any action pursuant to paragraph (1) of subdivision (a).
(2) If the public agency has no county administrative officer, city manager, chief engineer, or other nonelected agency officer, the governing body, by a four-fifths vote, may delegate to an elected officer the authority to order any action specified in paragraph (1) of subdivision (a).
(3) If a person with authority delegated pursuant to paragraph (1) or (2) orders any action specified in paragraph (1) of subdivision (a), that person shall report to the governing body, at its next meeting required pursuant to this section, the reasons justifying why the emergency will not permit a delay resulting from a competitive solicitation for bids and why the action is necessary to respond to the emergency.
(c) (1) If the governing body orders any action specified in subdivision (a), the governing body shall review the emergency action at its next regularly scheduled meeting and, except as specified below, at every regularly scheduled meeting thereafter until the action is terminated, to determine, by a four-fifths vote, that 19b
ENCLOSURE 2
there is a need to continue the action. If the governing body meets weekly, it may review the emergency action in accordance with this paragraph every 14 days. (2) If a person with authority delegated pursuant to subdivision (b) orders any action specified in paragraph (1) of subdivision (a), the governing body shall initially review the emergency action not later than seven days after the action, or at its next regularly scheduled meeting if that meeting will occur not later than 14 days after the action, and at least at every regularly scheduled meeting thereafter until the action is terminated, to determine, by a four-fifths vote, that there is a need to continue the action, unless a person with authority delegated pursuant to subdivision (b) has terminated that action prior to the governing body reviewing the emergency action and making a determination pursuant to this subdivision. If the governing body meets weekly, it may, after the initial review, review the emergency action in accordance with this paragraph every 14 days. (3) When the governing body reviews the emergency action pursuant to paragraph (1) or (2), it shall terminate the action at the earliest possible date that conditions warrant so that the remainder of the emergency action may be completed by giving notice for bids to let contracts.
(d) As used in this section, “public agency” has the same meaning as defined in Section 22002.
(e) A three-member governing body may take actions pursuant to subdivision (a), (b), or (c) by a two-thirds vote.
(f) This section applies only to emergency action taken pursuant to Sections 20134, 20168, 20205.1, 20213, 20223, 20233, 20253, 20273, 20283, 20293, 20303, 20313, 20331, 20567, 20586, 20604, 20635, 20645, 20682, 20682.5, 20736, 20751.1, 20806, 20812, 20914, 20918, 20926, 20931, 20941, 20961, 20991, 21020.2, 21024, 21031, 21043, 21061, 21072, 21081, 21091, 21101, 21111, 21121, 21131, 21141, 21151, 21161, 21171, 21181, 21191, 21196, 21203, 21212, 21221, 21231, 21241, 21251, 21261, 21271, 21290, 21311, 21321, 21331, 21341, 21351, 21361, 21371, 21381, 21391, 21401, 21411, 21421, 21431, 21441, 21451, 21461, 21472, 21482, 21491, 21501, 21511, 21521, 21531, 21541, 21552, 21567, 21572, 21581, 21591, 21601, 21618, 21624, 21631, 21641, and 22035. (Amended by Stats. 2017, Ch. 387, Sec. 16. (SB 205) Effective January 1, 2018.) To: Mayor and City Council
From: City Manager
Meeting Date: June 14, 2022
Subject: INTRODUCE AN ORDINANCE ADDING SECTION

12.20.170 “STREET CUT MORATORIUM” TO TITLE 12
“STREETS, SIDEWALKS AND PUBLIC PLACES”,
DIVISION 1 “STREET PERMIT WORK”, CHAPTER 12.20
“EXCAVATIONS AND ENCROACHMENTS” TO THE PICO

RIVERA MUNICIPAL CODE ESTABLISHING A STREET

CUT MORATORIUM ON NEWLY PAVED STREETS
Recommendation:

1. Introduce and waive first reading of ordinance adding Section 12.20.170 “Street Cut Moratorium” to Title 12 “Streets, Sidewalks and Public Places”, Division 1 “Street Permit Work”, Chapter 12.20 “Excavations and Encroachments” to the Pico Rivera Municipal Code (“PRMC”) establishing a street cut moratorium on newly paved streets; and

2. Schedule the second reading and adoption of said ordinance at the next regular City Council meeting.

Fiscal Impact:

Approval of the recommended action will have no fiscal impact. Some cost savings may be realized from this ordinance, as street integrity will be maintained and preserved, thus reducing the need for repairs and maintenance.

Discussion:

The City of Pico Rivera utilizes a Pavement Management System (PMS) to maintain the integrity of the overall street network. To optimize the life of the existing pavement, street rehabilitation is determined based on the evaluation of the Pavement Condition Index (PCI) of the City’s individual streets. The recently conducted Pavement Management System identified the City’s pavement deficiencies of street segments citywide.

The City Council approved a two-phase, $30 million Pavement Management Program (PMP) to address pavement deficiencies and rehabilitate residential streets and major arterials citywide over the next couple of years. The first phase involved issuance of 20 CITY COUNCIL AGENDA REPORT – MEETING OF JUNE 14, 2022 APPROVAL OF AN ORDINANCE ADDING SECTION 12.20.170 “STREET CUT MORATORIUM” TO TITLE 12 “STREETS, SIDEWALKS AND PUBLIC PLACES”, DIVISION 1 “STREET PERMIT WORK”, CHAPTER 12.20 “EXCAVATIONS AND ENCROACHMENTS” TO THE PICO RIVERA MUNICIPAL CODE ESTABLISHING A

STREET CUT MORATORIUM ON NEWLY PAVED STREETS

$15 million in Certificates of Participation (COPs). These funds are currently being spent to rehabilitate streets throughout the City according to the PMP.

Due to the City’s substantial investment in improving overall street conditions, and to minimize and mitigate pavement degradation from the consequence of utility cuts to newly reconstructed or resurfaced streets, staff proposes the attached a street cut moratorium restricting cuts on newly paved streets. Studies have shown that excavations in paved streets degrade and shorten the life of the surface of the streets.

The cutting of the pavement and trenching in the streets permits water seepage into the street as well as the weakening of the pavement support around the patch edges which allows deterioration at a much faster rate. This degradation increases the frequency and cost to the public of necessary resurfacing, maintenance, and repair.

Additionally, State law permits municipalities to regulate utilities that operate under the California Public Utilities Commission (PUC) authority with respect to the use and repair of public streets. The City is able to plan maintenance programs, protect public safety, minimize public inconvenience and ensure adherence to sound construction practices.

Street Cut Restriction
The Street Cut Moratorium prohibits the following:
“After any street has been constructed, reconstructed, or paved by City forces, under a city contract or under an encroachment permit, no pavement cutting, or excavation will be permitted for a period of five (5) years after the construction has been accepted by the City Council. The prohibition includes asphalt overlays, pavement reconstruction, pavement rehabilitation and new pavement construction.

After any street has been slurry sealed, chip sealed or cape sealed by City forces, under a city contract or under an encroachment permit, no pavement cutting, or excavation will be permitted for a period of three (3) years after the construction has been accepted by the City Council.”
However, the Public Works Director or City Engineer may in his/her discretion grant exemptions to the above referenced prohibitions under any of the following circumstances:

1. Emergencies which endanger life or property or interrupt essential utility service.

2. Work that is mandated by City, State or Federal legislation.

3. Work necessary to provide utility service for buildings or properties where no other reasonable means of providing service exists.

CITY COUNCIL AGENDA REPORT – MEETING OF JUNE 14, 2022
APPROVAL OF AN ORDINANCE ADDING SECTION 12.20.170 “STREET CUT MORATORIUM” TO TITLE 12 “STREETS, SIDEWALKS AND PUBLIC PLACES”, DIVISION 1 “STREET PERMIT WORK”, CHAPTER 12.20 “EXCAVATIONS AND ENCROACHMENTS” TO THE PICO RIVERA MUNICIPAL CODE ESTABLISHING A

STREET CUT MORATORIUM ON NEWLY PAVED STREETS

4. Other situations deemed by the Public Works Director or City Engineer to be in the best interest of the City.

The proposed street cut ordinance is based on best practices within the industry. Most cities have some type of street cut ordinance in place and staff research indicates that the ordinance presented is neither the most, nor least stringent in the surrounding cities.

Staff tried to strike a balance between reasonable regulations considering the impact on utility providers and proposed development activities, while protecting the significant investment in City streets.

Repaving Requirements
Pavement restoration work under an exemption shall comply with the Street Cut Restoration Standard Requirements on section 2(E) of the enclosed ordinance.

However, the Director of Public Works or City Engineer may determine that additional restoration requirements are appropriate due to circumstances unique to the excavation site.

Steve Carmona
SC:TR:LO:ll
Enclosure: 1) Ordinance
ENCLOSURE 1
ORDINANCE NO. ____

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PICO
RIVERA, CALIFORNIA, ADDING SECTION 12.20.170 (STREET CUT MORATORIUM) TO TITLE 12, DIVISION 1, CHAPTER 12.20 TO THE

PICO RIVERA MUNICIPAL CODE ESTABLISHING A STREET

CUT MORATORIUM ON NEWLY PAVED STREETS
WHEREAS, pursuant to the California Constitution, Article XI, Section 7, the City of Pico Rivera (“City”) may make and enforce within its limits all local, police, sanitary, and other ordinances and regulations not in conflict with general law; WHEREAS, Article XI, Section 9 of the California Constitution proscribes that persons or corporations which establish and operate works for supplying light, water, power, heat, transportation or means of communication, to residents of municipal corporation must establish and operate such services upon conditions and under regulations that the City may prescribe under its organic law; WHEREAS, Article XI, Section 9 of the California Constitution allows cities to establish conditions and regulations over the use of the public right-of-way to supply utility services;
WHEREAS, Section 235 of the Federal Telecommunications Act of 1996 (47 U.S.C. §253) recognizes “the authority of…local government to manage the public rightsof-way,” provided that local regulation may not effectively prohibit a company’s ability to provide telecommunication services;
WHEREAS, California Government Code Section 37350 et seq., and 38775 provide that a municipality may take care of and control its property for the common benefit, and prevent encroachments upon public ways;
WHEREAS, Public Utilities Code Section 2902 reserves the right of cities to “regulate the relationship between a public utility and the general public in matters affecting the health, convenience, and safety of the general public, including matters such as the use and repair of public streets by any public utility, [and] the location of the poles, wires, mains, or conduits of any public utility, on, under, or above any public street…”; WHEREAS, Public Utilities Code Section 7901.1 gives cities “the right to exercise reasonable control as to the time, place, and manner in which roads…are accessed [,]” provided such control is “applied to all entities in an equivalent manner”; WHEREAS, Title 12, Chapter 12.04, Article 1, Section 12.04.020 of the Pico Rivera Municipal Code states persons are required to obtain a permit from the City Engineer to make excavation in any street;
20a
ORDINANCE NO. ____

WHEREAS, excavations of City streets interfere with transportation and lead to degradation and shortening of the function life of streets, which imposes costs to the public including street repair and resurfacing;
WHEREAS, the City Council seeks to implement a street cut moratorium to: (i) protect the City’s investment in its Capital Improvement Program; (ii) prevent harm to City streets by minimizing pavement degradation, maintaining structural integrity of streets and smooth riding surfaces, and limiting negative visual impacts; (iii) regulate so that utility companies with proposed project that require excavation of roadways can more effectively plan and review conflicts that will be encountered and thereby (iv) protect the public health, safety, and welfare of residents.

NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Pico Rivera as follows:

SECTION 1. Incorporation of Recitals. The City Council hereby finds and determines that the recitals above are true and correct and hereby incorporated into this ordinance as though fully set forth herein.

SECTION 2. Section 12.20.170, “Street Cut Moratorium,” is hereby added to Chapter 12.20, Division 1, Title 12 of the Pico Rivera Municipal Code and shall read as follows:

A. After any street has been constructed, reconstructed, or paved by City forces, under a City contract or under an encroachment permit, no pavement cutting or excavation will be permitted for a period of five (5) years after completion or from the recordation of a notice of completion, whichever comes first. The prohibition includes asphalt overlays, pavement reconstruction, pavement rehabilitation and new pavement construction.

B. After any street has been slurry sealed, chip sealed or cape sealed by City forces, under a City contract or under an encroachment permit, no pavement cutting or excavation will be permitted for a period of three (3) years after completion or from the recordation of a notice of completion, whichever comes first.

C. The City Engineer shall develop and maintain a Master Pavement List and make it available at the Engineering Division public counter and the City’s Clerk’s Office. The Master Pavement list shall identify those segments of the public right-of-way that are subject to the prohibition of this Ordinance and the corresponding starting and ending dates of the prohibition.

ORDINANCE NO. ____

D. The Public Works Director or City Engineer may in its discretion grant exemptions to the prohibition of subsections (A) and (B) of this Section under any of the following circumstances:

1. Emergencies which endanger life or property or interrupt essential utility service.

2. Work that is mandated by City, State or Federal legislation.

3. Work necessary to provide utility service for buildings or properties where no other reasonable means of providing service exists.

4. Other situations deemed by the Public Works Director or City Engineer to be in the best interest of the City.

E. Pavement restoration work conducted on a street under the moratorium under an exemption provided in this Section, shall comply with the following Street Cut Restoration Standard Requirements, however, the Director of Public Works or City Engineer may determine that additional restoration requirements are appropriate due to circumstances unique to the excavation site:

1. Restoration Standards for Slurry Sealed Streets:

All streets slurry sealed and on the City's moratorium list streets must be re-slurry sealed per dimension requirements.

2. Restoration Standards for Asphalt Concrete Reconstructed Streets:

All streets reconstructed and on the City's moratorium list must be repaired by grinding a minimum of 2" of existing pavement by cold plane and overlaying with 2" thick asphalt concrete (A.C.).

3. Restoration Standards for Longitudinal excavations conducted in the rightof-way with existing lane lines (not extending into an intersection):

Permitter shall restore from the edges of the lane lines for the outermost lane(s) affected by the utility cut or from the edge of the lane line and the edge of gutter or curb and a distance of at least ten feet (10') beyond the limits of excavation in both directions.

ORDINANCE NO. ____

4. Restoration Standards for Longitudinal excavations conducted in the right-ofway without lane lines and intersections or in the outside lane with existing lane lines:

Permitter shall restore from the point of restoration of the trench to edge of curb/gutter or a minimum of at least thirteen feet (13'), whichever is greater and for a distance of at least ten feet (10') beyond the limits of excavation in both directions.

5. Restoration Standards for Transverse excavations conducted in the right-ofway with existing lane lines:

Permitter shall restore all affected traffic lanes. Trenches within ten feet (10') of a curb/gutter or edge of area paved within the past six (6) months or twenty feet (20') from another excavation shall be ground and overlaid contiguously in a rectangular shape to the outer extents of the affected lanes.

ORDINANCE NO. ____

6. Restoration Standards for Transverse excavations conducted in the right-ofway without lane lines Permitter shall restore ten feet (10') in every direction. Trenches within ten feet (10') of a curb/gutter or edge of area paved within the past six (6) months or twenty feet (20') from another excavation shall be ground and overlaid contiguously in a rectangular shape to the outer extents of the affected lanes.

ORDINANCE NO. ____

7. Any person who is required to repave a street shall obtain an encroachment permit and shall be responsible for the full cost of plan preparation, plan review, construction inspection, material testing, bonding, and all other expenses related to the work.

SECTION 3. Any provision of the City of Pico Rivera’s Municipal Code inconsistent with the provisions of this Ordinance, to the extent of such inconsistency and no further, is hereby repealed or modified to the extent necessary to affect the provisions of this Ordinance.

SECTION 4. This Ordinance is exempt from the California Environmental Quality Act (“CEQA”) based on the following:

A. Under CEQA Guidelines Section 15061(b)(3), CEQA review is not required because there is no possibility that this Ordinance may have a significant effect upon the environment.

B. Under CEQA Guidelines Section 15378, the proposed amendment is not a project under CEQA because it will not cause a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment, because it is limiting in nature and does not authorize any specific development activity or promote new construction.

C. Any potential indirect physical change in the environment is speculative and not reasonably foreseeable.

SECTION 5. If any section, subsection, subdivision, paragraph, sentence, clause or phrase of this Ordinance, or any part thereof is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance or any part thereof. The City Council hereby declares that it would have passed each section, subsection, ORDINANCE NO. ____

subdivision, paragraph, sentence, clause, or phrase thereof, irrespective of the fact that any one or more section, subsection, subdivision, paragraph, sentence, clause or phrase would be subsequently declared invalid or unconstitutional SECTION 6. The City Clerk shall attest to the adoption of this Ordinance and shall cause the same to be published in a newspaper of general circulation within 15 days after passage in accordance with Government Code Section 36933. This Ordinance shall take effect thirty (30) days after its passage pursuant to Government Code Section 36937.

APPROVED AND ADOPTED this ______day of ________, 2022.
_____________________________
Dr. Monica Sanchez, Mayor
ATTEST: APPROVED AS TO FORM:
________________________________ ___________________________________ Anna M. Jerome, City Clerk Arnold M. Alvarez-Glasman, City Attorney

STATE OF CALIFORNIA )
) §

COUNTY OF LOS ANGELES )
I, Anna M. Jerome, City Clerk of the City of Pico Rivera, do hereby certify that the foregoing Ordinance No. _____ was adopted at a regular meeting of the City Council of the City of Pico Rivera, held on Tuesday, _________________, with the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
__________________________________________
Anna M. Jerome, City Clerk
To: President and Commissioners
From: Executive Director
Meeting Date: June 14, 2022
Subject: DECLARATION OF EMERGENCY WATER

CONSERVATION PROVISIONS
Recommendation:

1. Approve a resolution declaring a Level 2 Water Supply Shortage in pursuant to Pico Rivera Municipal Code Section 13.70.050 to ensure compliance with the requirements of the State Water Resources Control Board (State Board) Resolution No. 2022-0002.

Fiscal Impact:

The City of Pico Rivera and Pico Rivera Water Authority (PRWA) are required by the State Board to reduce water consumption by 20% in response to Governor Newsom’s Executive Order N-7-22. This will translate to a proportional reduction in metered revenue. A reduction in production costs is also anticipated, but this reduction will be less than the percent reduction in revenue since some production costs are fixed and not dependent on the volume produced. Staff will monitor revenues and expenses during this transition.

The cost of the resources that will be required to enforce the new regulations is undetermined at this time and will be largely dependent on the number of reports and inquiries from the public. Staff will monitor impacts to staffing resources and plan organizational changes as required in order to ensure compliance with State requirements.

Discussion:

The drought conditions that formed the basis of the Governor's emergency proclamations continue to exist; and on October 19, 2021, the Governor issued an Executive Order N7-22 that, in part, directs the State Board to impose restrictions on water suppliers to achieve a statewide 20% reduction in potable urban usage through January 4, 2023, through additional conservation measures for residential, commercial, industrial, and institutional users to meet the requirements under the Stage 2 water shortage. 21 PICO RIVERA WATER AUTHORITY AGENDA REPORT – MEETING OF JUNE 14, 2022

DECLARATION OF EMERGENCY WATER CONSERVATION PROVISIONS

The Governor’s Executive Order contained several instructions for State Board implementation. Adopted by the State Board on January 4, 2022, and ratified by the Office of Administrative Law (OAL) on January 18, 2022, these new restrictions (Enclosure 2) continue the restrictions of State Board Resolution No. 2022-0002, approved on January 4, 2022, and add the following additional restrictions requiring action by the City:

1. Application of potable water to outdoor landscapes during and within 48 hours after measurable rainfall is prohibited.

2. Irrigation of outdoor landscaped areas shall be limited to the maximum number of days per week that will enable the water purveyor to meet its required total water consumption reduction (20% overall reduction for Pico Rivera).

In addition, State Board Resolution No. 2022-0002 requires the City of Pico Rivera to reduce total potable water consumption by 20% in the fiscal year (FY) 2022-23 and requires mandatory reporting to the State Board, prohibits watering of ornamental turf on street medians, and may require tiered conservation standards to discourage excessive water consumption. The City will also be required to enforce the regulations and requirements for landscaping outside of newly constructed buildings in development by the California Building Standards Commission and the Department of Housing and Community Development. Fines for violations of the new requirements are generally up to $500 for each day in which the violation occurs.

As a purveyor, PRWA is required to prepare and submit to the State Board by the 20th of each month a monitoring report on forms provided by the State Board. The monitoring report shall include the amount of potable water produced; including water provided by a wholesaler, in the preceding calendar month and shall compare that amount to the amount produced in the same calendar month in 2015. The monitoring report shall specify the population served by the urban water supplier, the percentage of water produced that is used for the residential sector, descriptive statistics on water conservation compliance and enforcement efforts, the number of days that outdoor irrigation is allowed, and monthly commercial, industrial, and institutional sector use. The monitoring report shall also estimate the gallons of water per person per day used by the residential customers it serves.

In FY 2020-21, in which the Level 1 declaration was mostly in effect, Pico Rivera achieved a cumulative reduction in water consumption of approximately 5%, with some months showing a reduction more than 10% relative to 2015. The recommended resolution will extend local water conservation restrictions and includes additional measures and restrictions in accordance with the State Board’s recently approved Resolution No. 2022- 0002.

The resolution would comply with the current requirements of the State Board. It should be noted that most of the requirements and restrictions contained in State Board PICO RIVERA WATER AUTHORITY AGENDA REPORT – MEETING OF JUNE 14, 2022

DECLARATION OF EMERGENCY WATER CONSERVATION PROVISIONS

Resolution No. 2022-0002 are permanent requirements/restrictions in the Pico Rivera Municipal Code (PRMC 13.70.040). However, the State Board requirements do not exactly align with the structure of the Pico Rivera Municipal Code and the various stages of water supply shortage defined in the code. Summarized below are the modifications to the City Municipal Code necessary to fully implement the State Board requirements.

Also, the Level 2 as defined in the PRMC includes some additional restrictions/requirements.

In addition to permanent and Level 1 PRMC conservation measures, PRWA will implement the Level 2 conservation measures identified in Pico Rivera Municipal Code Section 13.70.060 with the following additional water use restrictions and enforcement actions:

1. Irrigation systems, or watering or irrigating by use of hand-held bucket or similar container, a hand-held hose equipped with a positive self-closing water shut-off nozzle or device, or for very short periods of time for the express purpose of adjusting or repairing an irrigation system are excluded. (Note that Level 1 normally limits watering days to 3 days per week. Therefore, this additional measure is required to limit watering days to 2 days per week. Level 2 normally limits watering days to 2 days per week.)

2. The application of potable water to outdoor landscapes during and within 48 hours after measurable rainfall.

PRMC Level 2 includes the following restrictions above and beyond State Board requirements:

1. Re-filling of pools and spas limited to one foot in depth.

2. Initial filling of pools and spas prohibited.

3. Filling of ornamental ponds prohibited, except to sustain existing aquatic life.

4. PRWA has option to ration water to customers.

5. PRWA has option to implement tiered conservation standards.

6. PRWA may require customers to reduce water consumption by a mandatory percentage.

Recommended Watering Schedule
The recommended resolution limits watering days to a maximum of two (2) days per week from April through October and one (1) day per week from November through March. In order to make this restriction practical and enable enforcement, the following watering schedule is recommended:

Address Number Ending in Even Number
• 2 days per Week Schedule: Monday and Wednesday
• 1 day per Week Schedule: Tuesday
PICO RIVERA WATER AUTHORITY AGENDA REPORT – MEETING OF JUNE 14, 2022

DECLARATION OF EMERGENCY WATER CONSERVATION PROVISIONS

Address Number Ending in Odd Number
• 2 days per Week Schedule: Tuesday and Thursday
• 1 day per Week Schedule: Thursday
Irrigation with potable water using sprinklers systems with spray heads would be prohibited on Friday, Saturday, and Sunday. These schedule requirements do not apply to municipal facilities since the City is adjusting watering schedules to affect a 20% reduction in water consumption at each facility relative to 2015 consumption. This also does not apply to facilities irrigated with recycled water.

If approved, the resolution will remain in effect for a full year at which time the Board may review the water supply conditions and subsequent State Board actions to determine the need for continued and/or enhanced mandatory conservation measures.

Conclusion:

Staff recommends the approval of the Stage 2 Water Shortage resolution in accordance with the Pico Rivera Municipal Code Section 13.70.060, Level 2 Water Supply Shortage to meet the mandatory statewide 20% reduction in potable water use according to Governor Newsom’s Executive Order N-7-22; and to remain in effect until order is lifted.

Steve Carmona
SC:TR:AR:ll
Enclosures: 1) Resolution
2) Drought Executive Order N-7-22
3) Chapter 13.70 PRMC
4) Model Level 2 Water Shortage Response Actions
ENCLOSURE 1
RESOLUTION NO. ____

A RESOLUTION OF THE PICO RIVERA WATER AUTHORITY
DECLARING LEVEL 2 WATER SUPPLY SHORTAGE AND ADDITIONAL

MEASURES FOR IMPLEMENTING WATER CONSERVATION

MEASURES BY REASON OF REGULATIONS IMPOSED BY THE STATE

OF CALIFORNIA
WHEREAS, on October 19, 2021, the Governor issued a proclamation of a state of emergency under the California Emergency Services Act based on extreme and expanded drought conditions;
WHEREAS, THE PICO RIVERA WATER AUTHORITY (“Authority”) desires to approve a resolution, declaring a Level 2 Water Supply Shortage in accordance with the Municipal Code Section 13.70.050 imposing water conservation measures in response to regulations imposed by the State of California;
WHEREAS, the Level 2 Water Supply Shortage is intended to remain in effect until June 14, 2023 unless otherwise terminated or extended, in anticipation of the State Water Resources Control Board (“State Board”) promulgating new regulations by the new expiration date;
WHEREAS, the drought conditions that formed the basis of the Governor's emergency proclamations continue to exist; and on October 19, 2021, the Governor issued an Executive Order N-7-22 that, in part, directs the State Board to impose restrictions on water suppliers to achieve a statewide 20 percent (20%) reduction in potable urban usage through January 18, 2023; require residential, commercial, industrial, and institutional users to implement water efficiency measures; WHEREAS, water use reduction targets each individual urban water supplier, and the water use reduction target for the Pico Rivera Water Authority (PRWA) is 20% below water usage in 2018;
WHEREAS, on January 4, 2022 State Board responding to the Governor’s call for water conservation adopted provisions requiring urban water agencies to place mandatory water use restrictions on outdoor water use or to implement Water Shortage Contingency Plans to accomplish January 18, 2022 emergency regulations approval by the Office of Administrative Law;
WHEREAS, such water use restrictions include:

1. The application of potable water to outdoor landscapes in a manner that causes runoff such that water flows onto adjacent property, non-irrigated areas, private and public walkways, roadways, parking lots, or structures;

2. The use of a hose that dispenses potable water to wash a motor vehicle, except where the hose is fitted with a shut-off nozzle or device attached to it that causes it to cease dispensing water immediately when not in use;

3. The application of potable water to driveways and sidewalks; 21a
RESOLUTION NO. _____

4. The use of potable water in a fountain or other decorative water feature, except where the water is part of a recirculating system;

5. The application of potable water to outdoor landscapes during and within 48 hours after measurable rainfall;

6. The serving of drinking water other than upon request in eating or drinking establishments, including but not limited to restaurants, hotels, cafes, cafeterias, bars, or other public places where food or drink are served and/or purchased;

7. The irrigation with potable water of ornamental turf on public street medians;

8. The irrigation with potable water of landscapes outside of newly constructed homes and buildings in a manner inconsistent with regulations or other requirements established by the California Building Standards Commission and the Department of Housing and Community Development;

9. To promote water conservation, operators of hotels and motels shall provide guests with the option of choosing not to have towels and linens laundered daily. The hotel or motel shall prominently display notice of this option in each guestroom using clear and easily understood language;
WHEREAS, such infractions shall be punishable by a fine up to five hundred dollars ($500.00) per day for violations, and violators may be subject to the installation of water flow restrictors or disconnection of service;
WHEREAS, the City of Pico Rivera and the Pico Rivera Water Authority jointly prepared a 2020 Urban Water Management Plan, containing a Water Shortage Contingency Plan, which was approved by the State Department of Water Resources in 2014;
WHEREAS, the City and Pico Rivera Water Authority agreed to a multi-level water conservation plan, which the City then codified at Chapter 13.70 of the Pico Rivera Municipal Code; and
WHEREAS, to comply with recently effective State of California Water Resources Control Board regulations, the Pico Rivera Water Authority shall implement Level 2 water conservation measures described in Section 13.70.060 with the additional conditions stated herein.

NOW, THEREFORE, BE IT RESOLVED by the Pico Rivera Water Authority of the City of Pico Rivera as follows:

SECTION 1. The recitals above are true and correct and incorporated herein by reference.

SECTION 2. The Pico Rivera Water Authority determines and declares that due to drought, reduction in water use is necessary to ensure sufficient supplies will be available to meet anticipated demands.

RESOLUTION NO. _____

SECTION 3. The Pico Rivera Water Authority will implement the mandatory Level 2 conservation measures identified in Pico Rivera Municipal Code Section

13.70.060 subject to the following additional enforcement actions and exclusions:

A. Section 13.70.060, b. Item 6 - Other Prohibitive Uses. The following additional prohibitive measures are enforced:

1. The application of potable water to outdoor landscapes during and within 48 hours after measurable rainfall.

SECTION 4. The establishment of such a water supply emergency shall remain in effect until June 14, 2023, at which time the Authority shall review the water supply conditions to determine the need for continued mandatory conservation measures.

SECTION 5. At such time on or before the aforementioned date the State Water Board determines that a water supply emergency ceases to exist the State Water Board may approve a resolution to declare an end of the water supply emergency.

SECTION 6. If any portion of this resolution is deemed invalid or unenforceable, such provision shall be severable and the remainder of the resolution shall be given full force and effect.

SECTION 7. The Authority Secretary shall certify to the passage and approval of this resolution and hereafter the same shall be in full force and effect.

SECTION 8. The mandatory conservation requirements, however, shall take effect on the tenth day after the date this resolution is approved.

APPROVED AND PASSED this 14th day of June 2022.
____________________________________
Dr. Monica Sanchez, President
ATTEST: APPROVED AS TO FORM:
_______________________________ ____________________________________ Anna M. Jerome, Authority Secretary Arnold M. Alvarez-Glasman, General Counsel AYES:

NOES:

ABSENT:

ABSTAIN:

EXECUTIVE DEPARTMENT

STATE OF CALIFORNIA
EXECUTIVE ORDER N-7-22
WHEREAS on April 12, 202 l, May l 0, 2021, July 8, 202 l, and October 19, 2021, I proclaimed states of emergency that continue today and exist across all the counties of California, due to extreme and expanding drought conditions; and
WHEREAS climate change continues to intensify the impacts of droughts on our communities, environment, and economy, and California is in a third consecutive year of dry conditions, resulting in continuing drought in all parts of the State; and
WHEREAS the 21st century to date has been characterized by record warmth and predominantly dry conditions, and the 2021 meteorological summer in California and the rest of the western United States was the hottest on record; and
WHEREAS since my October 19, 2021 Proclamation, early rains in October and December 2021 gave way to the driest January and February in recorded history for the watersheds that provide much of California's water supply; and WHEREAS the ongoing drought will have significant, immediate impacts on communities with vulnerable water supplies, farms that rely on irrigation to grow food and fiber, and fish and wildlife that rely on stream flows and cool water; and
WHEREAS the two largest reservoirs of the Central Valley Project, which supplies water to farms and communities in the Central Valley and the Santa Clara Valley and provides critical cold-water habitat for salmon and other anadromous fish, have water storage levels that are approximately l .1 million acre-feet below last year's low levels on this date; and WHEREAS the record-breaking dry period in January and February and the absence of significant rains in March have required the Department of Water Resources to reduce anticipated deliveries from the State Water Project to 5 percent of requested supplies; and
WHEREAS delivery of water by bottle or truck is necessary to protect human safety and public health in those places where water supplies are disrupted; and
WHEREAS groundwater use accounts for 41 percent of the State's total water supply on an average annual basis but as much as 58 percent in a critically dry year, and approximately 85 percent of public water systems rely on groundwater as their primary supply; and
WHEREAS coordination between local entities that approve permits for new groundwater wells and local groundwater sustainability agencies is important to achieving sustainable levels of groundwater in critically overdrafted basins; and
ENCLOSURE 2
21b
WHEREAS the duration of the drought, especially following a multiyear drought that abated only five years ago, underscores the need for California to redouble near-, medium-, and long-term efforts to adapt its water management and delivery systems to a changing climate, shifting precipitation patterns, and water scarcity; and
WHEREAS the most consequential, immediate action Californians can take to extend available supplies is to voluntarily reduce their water use by 15 percent from their 2020 levels by implementing the commonsense measures identified in operative paragraph 1 of Executive Order N-10-21 (July 8, 2021 ); and
WHEREAS to protect public health and safety, it is critical the State take certain immediate actions without undue delay to prepare for and mitigate the effects of the drought conditions, and under Government Code section 8571, I find that strict compliance with various statutes and regulations specified in this Proclamation would prevent, hinder, or delay the mitigation of the effects of the drought conditions.

NOW, THEREFORE, I, GAVIN NEWSOM, Governor of the State of California, in accordance with the authority vested in me by the State Constitution and statutes, including the California Emergency Services Act, and in particular, Government Code sections 8567, 8571, and 8627, do hereby issue the following Order to become effective immediately:

IT IS HEREBY ORDERED THAT:

1. The orders and provisions contained in my April 21, 2021, May 10, 2021, July 8, 2021, and October 19, 2021 Proclamations remain in fu ll force and effect, except as modified by those Proclamations and herein.

State agencies shall continue to implement all directions from those Proclamations and accelerate implementation where feasible.

2. To help the State achieve its conservation goals and ensure sufficient water for essential indoor and outdoor use, I call on all Californians to strive to limit summertime water use and to use water more efficiently indoors and out. The statewide Save Our Water conservation campaign at SaveOurWater.com provides simple ways for Californians to reduce water use in their everyday lives. Furthermore, I encourage Californians to understand and track the amount of water they use and measure their progress toward their conservation goals.

3. By May 25, .2022, the State Water Resources Control Board (Water Board) shall consider adopting emergency regulations that include all of the following:
a. A requirement that each urban water supplier, as defined in section 10617 of the Water Code, shall submit to the Department of Water Resources a preliminary annual water supply and demand assessment consistent with section 10632.1 of the Water Code no later than June 1, 2022, and submit a final annual water supply and demand assessment to the Department of Water Resources no later than the deadline set by section 10632.1 of the Water Code;
b. A requirement that each urban water supplier that has submitted a water shortage contingency plan to the
Department of Water Resources implement, at a minimum, the shortage response actions adopted under section 10632 of the Water Code for a shortage level of up to twenty percent (Level 2), by a date to be set by the Water Board; and
c. A requirement that each urban water supplier that has not submitted a water shortage contingency plan to the
Department of Water Resources implement, at a minimum,
shortage response actions established by the Water Board, which shall take into consideration model actions that the Department of Water Resources shall develop for urban water supplier water shortage contingency planning for Level 2, by a date to be set by the Water Board.

To further conserve water and improve drought resiliency if the drought lasts beyond this year, I encourage urban water suppliers to conserve more than required by the emergency regulations described in this paragraph and to voluntarily activate more stringent local requirements based on a shortage level of up to thirty percent (Level 3).

4. To promote water conservation, the Department of Water Resources shall consult with leaders in the commercial, industrial, and institutional sectors to develop strategies for improving water conservation, including direct technical assistance, financial assistance, and other approaches. By May 25, 2022, the Water Board shall consider adopting emergency regulations defining "non-functional turf" (that is, a definition of turf that is ornamental and not otherwise used for human recreation purposes such as school fields, sports fields, and parks) and banning irrigation of non-functional turf in the commercial, industrial, and institutional sectors except as it may be required to ensure the health of trees and other perennial non-turf plantings.

5. In order to maximize the efficient use of water and to preserve water supplies critical to human health and safety and the environment, Public Resources Code, Division 13 (commencing with section 21000) and regulations adopted pursuant to that Division are hereby suspended, with respect to the directives in paragraphs 3 and 4 of this Order and any other projects and activities for the purpose of water conservation to the extent necessary to address the impacts of the drought, and any permits necessary to carry out such projects or activities. Entities that desire to conduct activities under this suspension, other than the directives in paragraphs 3 and 4 of this Order, shall first request that the Secretary of the Natural Resources Agency make a determination that the proposed activities are eligible to be conducted under this suspension. The Secretary shall use sound discretion in applying this Executive Order to ensure that the suspension serves the purpose of accelerating conservation projects that are necessary to address impacts of the drought, while at the same time protecting public health and the environment. The entities implementing these directives or conducting activities under this suspension shall maintain on their websites a list of all activities or approvals for which these provisions are suspended.

6. To support voluntary approaches to improve fish habitat that would require change petitions under Water Code section 1707 and either Water Code sections 1425 through 1432 or Water Code sections 1725 through 1732, and where the primary purpose is to improve conditions for fish, the Water Board shall expeditiously consider petitions that add a fish and wildlife beneficial use or point of diversion and place of storage to improve conditions for anadromous fish. California Code of Regulations, title 23, section 1064, subdivisions ( a) ( 1) (A) (i)-(ii) are suspended with respect to any petition that is subject to this paragraph.

7. To facilitate the hauling of water for domestic use by local communities and domestic water users threatened with the loss of water supply or degraded water quality resulting from drought, any ordinance, regulation, prohibition, policy, or requirement of any kind adopted by a public agency that prohibits the hauling of water out of the water's basin of origin or a public agency's jurisdiction is hereby suspended. The suspension authorized pursuant to this paragraph shall be limited to the hauling of water by truck or bottle to be used for human consumption, cooking, or sanitation in communities or residences threatened with the loss of affordable safe drinking water.

Nothing in this paragraph limits any public health or safety requirement to ensure the safety of hauled water.

8. The Water Board shall expand inspections to determine whether illegal diversions or wasteful or unreasonable use of water are occurring and bring enforcement actions against illegal diverters and those engaging in the wasteful and unreasonable use of water. When access is not granted by a property owner, the Water Board may obtain an inspection warrant pursuant to the procedures set forth in Title 13 (commencing with section 1822.50) of Part 3 of the Code of Civil Procedure for the purposes of conducting an inspection pursuant to this directive.

9. To protect health, safety, and the environment during this drought emergency, a county, city, or other public agency shall not:
a. Approve a permit for a new groundwater well or for alteration of an existing well in a basin subject to the Sustainable
Groundwater Management Act and classified as medium- or high-priority without first obtaining written verification from a Groundwater Sustainability Agency managing the basin or area of the basin where the well is proposed to be located that groundwater extraction by the proposed well would not be inconsistent with any sustainable groundwater management program established in any applicable Groundwater
Sustainability Plan adopted by that Groundwater Sustainability Agency and would not decrease the likelihood of achieving a sustainability goal for the basin covered by such a plan; or b. Issue a permit for a new groundwater well or for alteration of an existing well without first determining that extraction of groundwater from the proposed well is (1) not likely to interfere with the production and functioning of existing nearby wells, and (2) not likely to cause subsidence that would adversely impact or damage nearby infrastructure.

This paragraph shall not apply to permits for wells that will provide less than two acre-feet per year of groundwater for individual domestic users, or that will exclusively provide groundwater to public water supply systems as defined in section 116275 of the Health and Safety Code.

10. To address household or small community drinking water shortages dependent upon groundwater wells that have failed due to drought conditions, the Department of Water Resources shall work with other state agencies to investigate expedited regulatory pathways to modify, repair, or reconstruct failed household or small community or public supply wells, while recognizing the need to ensure the sustainability of such wells as provided for in paragraph 9.

11. State agencies shall collaborate with tribes and federal, regional, and local agencies on actions related to promoting groundwater recharge and increasing storage.

12. To help advance groundwater recharge projects, and to demonstrate the feasibility of projects that can use available high water flows to recharge local groundwater while minimizing flood risks, the Water Board and Regional Water Quality Control Boards shall prioritize water right permits, water quality certifications, waste discharge requirements, and conditional waivers of waste discharge requirements to accelerate approvals for projects that enhance the ability of a local or state agency to capture high precipitation events for local storage or recharge, consistent with water right priorities and protections for fish and wildlife. For the purposes of carrying out this paragraph, Division 13 (commencing with section 21000) of the Public Resources Code and regulations adopted pursuant to that Division, and Chapter 3 ( commencing with section 85225) of Part 3 of Division 35 of the Water Code and regulations adopted pursuant thereto are hereby suspended to the extent necessary to address the impacts of the drought. This suspension applies to (a) any actions taken by state agencies, (b) any actions taken by local agencies where the state agency with primary responsibility for the implementation of the directives concurs that local action is required, and (c) permits necessary to carry out actions under (a) or (b). The entities implementing these directives shall maintain on their websites a list of all activities or approvals for which these provisions are suspended.

13. With respect to recharge projects under either Flood-Managed Aquifer Recharge or the Department of Water Resources Sustainable Groundwater Management Grant Program occurring on open and working lands to replenish and store water in groundwater basins that will help mitigate groundwater conditions impacted by drought, for any (a) actions taken by state agencies, (b) actions taken by a local agency where the Department of Water Resources concurs that local action is required, and (c) permits necessary to carry out actions under (a) or (b), Public Resources Code, Division 13 (commencing with section 21000) and regulations adopted pursuant to that Division are hereby suspended to the extent necessary to address the impacts of the drought. The entities implementing these directives shall maintain on their websites a list of all activities or approvals for which these provisions are suspended.

14. To increase resilience of.state water supplies during prolonged drought conditions, the Department of Water Resources shall prepare for the potential creation and implementation of a multi-year transfer program pilot project for the purpose of acquiring water from willing partners and storing and conveying water to areas of need.

15. By April 15, 2022, state agencies shall submit to the Department of Finance for my consideration proposals to mitigate the worsening effects of severe drought, including emergency assistance to communities and households and others facing water shortages as a result of the drought, facilitation of groundwater recharge and wastewater recycling, improvements in water use efficiency, protection of fish and wildlife, mitigation of drought-related economic or water-supply disruption, and other potential investments to support short- and long-term drought response.

IT IS FURTHER ORDERED that as soon as hereafter possible, this Order be filed in the Office of the Secretary of State and that widespread publicity and notice be given of this Order.

This Order is not intended to, and does not, create any rights or benefits, substantive or procedural, enforceable at law or in equity, against the State of California, its agencies, departments, entities, officers, employees, or any other person.

IN WITNESS WHEREOF I have hereunto set
my hand and caused the Great Seal of the
State of California to be affixed this 28th
day of March 2022.

I I
,:, .
l · I'
t (.1 I
l~~-~-- GAVIN NEWSOM
Governor of California
ATTEST:

SHIRLEY N. WEBER, PH.D.

Secretary of State
ENCLOSURE 3

13.70.060 Level 2 water supply shortage.

A. A Level 2 water supply shortage exists when the city determines, in its sole discretion, that due to drought or other supply reductions, a water supply shortage exists and a consumer demand reduction is necessary to ensure sufficient supplies will be available to meet anticipated demands.

Upon the declaration by the city of a Level 2 water supply shortage condition, the city will implement the mandatory Level 2 conservation measures identified in this section.

B. Additional Conservation Measures. In addition to the prohibited uses of water identified in Sections 13.70.040 and 13.70.050, the following additional water conservation requirements apply during a declared Level 2 water supply shortage:

1. Watering Days. Watering or irrigating of lawn, landscape or other vegetated area with potable water is limited to two days per week on a schedule established and posted by the city.

During the months of November through March, watering or irrigating of lawn, landscape or other vegetated area with potable water is limited to no more than one day per week on a schedule established and posted by the city. This provision does not apply to landscape irrigation zones that exclusively use very low flow drip type irrigation systems when no emitter produces more than two gallons of water per hour. This provision also does not apply to watering or irrigating by use of hand-held bucket or similar container, a hand-held hose equipped with a positive selfclosing water shut-off nozzle or device, or for very short periods of time for the express purpose of adjusting or repairing an irrigation system.

2. Obligation to Fix Leaks, Breaks or Malfunctions. All leaks, breaks or other malfunctions in the water user’s plumbing or distribution system must be repaired within forty-eight hours of notification by the city unless other arrangements are made with the city.

3. Limits on Filling Ornamental Lakes or Ponds. Filling or refilling ornamental lakes or ponds is prohibited, except to the extent needed to sustain aquatic life, provided that such animals are of significant value and have been actively managed within the water feature prior to the declaration of a supply shortage level under this chapter.

4. Limits on Washing Vehicles. Using water to wash or clean a vehicle, including, but not limited to, any automobile, truck, van, bus, motorcycle, boat or trailer, whether motorized or not, is prohibited except by use of a hand-held bucket or similar container, a hand-held hose equipped with a positive self-closing water shut-off nozzle or device, by high pressure/low volume wash systems, or at a commercial car washing facility that utilizes a recirculating water system to capture or reuse water.

5. Limits on Filling Residential Swimming Pools and Spas. Refilling of more than one foot and initial filling of residential swimming pools or outdoor spas with potable water is prohibited.

6. Other Prohibited Uses. The city may implement other prohibited water uses as determined by the city, after notice to customers.

D. In addition to the above procedures during a Level 2 water supply shortage, the city may adopt the following procedures:

1. Water Allocations/Water Budget. The city will establish a water allocation for property served by the city using a method that does not penalize persons for the implementation of conservation methods of the installation of water saving devices. The city must provide notice of 21c
ENCLOSURE 3
the allocation by including it in the regular billing statement for the fee or charge or by any other mailing to the address to which the city customarily mails the billing statement for fees or charges for on-going water service.

Following the effective date of the water allocation as established by the city, any person that uses water in excess of the allocation will be subject to a citation in accordance with Section

13.70.210. Any monetary penalty for excess water usage may be imposed for violation of this chapter.

2. Water Supply Shortage Rates. During a Level 2 water supply shortage condition, the city may increase water rates by an amount necessary, as determined by the city. The increase in water rates may vary from categories of customers.

3. Mandatory Percentage Use Reductions. During a Level 2 water supply shortage condition, all customers will be required to reduce water consumption by a percentage determined by the city. (Ord. 1056 § 1, 2009)
DWR 9045 (Rev. 1/09)
State of California California Natural Resources Agency M e m o r a n d u m
Date: April 15, 2022
To: Eric Oppenheimer
Chief Deputy Director
State Water Resources Control Board
Kristopher Tjernell
Deputy Director, Integrated Watershed Management
From: Department of Water Resources
Subject: Model Level 2 Water Shortage Response Actions
for Urban Water Supplier Water Shortage Contingency Planning On March 28, 2022, Governor Newsom issued Executive Order (EO) N-7-22 to address drought conditions after the driest first three months of a year in the state’s recorded history. To comply with the order, this paper provides information on a proposed model water shortage response actions developed by Department of Water Resources (DWR) for the State Water Resources Control Board (Water Board) to consider when adopting an emergency regulation to require urban water suppliers that have not submitted a water shortage contingency plan (WSCP) to the DWR implement, at a minimum, model shortage response actions. • For Suppliers with a WSCP (submitted to DWR): EO N-7-22 requires that each Supplier implement, at a minimum, the shortage response actions adopted under section 10632 of the Water Code for a shortage level of up to twenty percent (Level 2). The EO states that these Level 2 actions are to be implemented by a date to be set by the Water Board.
• For Suppliers without a WSCP (submitted to DWR): EO N-7-22 requires that each Supplier implement, at a minimum, shortage response actions established by the Water Board through an emergency regulation. The Water Board shall take into consideration the Level 2 actions developed by DWR. The EO states that these Level 2 model actions are to be implemented by a date set by the Water Board.

Water Shortage Response Actions and Six Standard Water Shortage Levels Note that California Water Code (CWC) §10632(a) requires that Suppliers include in their WSCPs locally appropriate shortage response actions which align with six specified standard levels of shortage including:
• Locally appropriate supply augmentation actions.
• Locally appropriate demand reduction actions.
• Locally appropriate operational changes.

ENCLOSURE 4
21d
DWR 9045 (Rev. 1/09)
• Additional, mandatory prohibitions against specific water use practices.

A Supplier also needs to evaluate each action and estimate how much water savings it would produce based on the Supplier’s local conditions and supply and demand characteristics. This evaluation is a perquisite for a successful selection and implementation of locally appropriate water shortage response actions.

CWC §10632(a)(3)(A) defines six standard water shortage levels that correspond to progressive ranges of up to 10, 20, 30, 40, and 50 percent shortages and greater than 50 percent shortage.

Model Level 2 Water Shortage Response Actions
The following list presents proposed model water shortage response actions developed by DWR and deemed appropriate for a Level 2 shortage, which corresponds to the range of up to 20 percent shortage. Suppliers may have the flexibility to choose locally-appropriate actions consistent with CWC §10632.2 and not have to implement each and all of the actions listed as long as they achieve a 20 percent reduction in water use.

1. Expanded information campaigns
Campaigns may include public information and outreach via email, paper mail, bill inserts, customer app notifications, news articles, websites, community events, radio and television, billboards, and social media.

2. Landscape water use restrictions
Restrictions may include reduction in permissible hours and weekly frequency for landscape irrigation.

3. Use type restrictions
Suppliers must implement and enforce ordinances banning certain water use types such as:
• Washing or hosing down of hard surfaces (driveways, sidewalks, …) • Filling of non-recirculating fountains
• Using potable supplies for decorative water features

4. Banning water waste and specific practices
Suppliers must implement and enforce prohibitions that target water waste and certain practices, including:
• Runoff onto non-irrigated areas, walkways, roadways, parking lots, or other hard surfaces.
• Unfixed leaks and broken or defective plumbing (including but not limited to leaking toilet flapper valves) and irrigation systems.
• Use of hoses not fitted with automatic shut-off nozzles • Serving of water in restaurants except on request
DWR 9045 (Rev. 1/09)
• Laundering towels and linens daily in hotels without providing guests an optout option

5. Water conservation incentives
Suppliers shall consider water conservation incentives and programs to provide customer rebates such as:
• Rebates for plumbing fixtures (low flush toilets, high efficiency washers, low flow showerheads, faucet aerators, …)
• Free conservation retrofit kits to customers
• Rebates for turf replacement
• Prioritize water for trees, including, but not limited to, through rebate, direct installation, and educational programs focused on transitioning from turfcentric to tree-centric irrigation systems that promote deep and healthy root growth.
• Offer water use surveys (especially for CII customers)

6. Water-saving operational changes
Suppliers may consider operational changes that can help save water include measures such as:
• Decreasing line flushing and fire training exercises
• Increasing water waste patrols and enforcement
• Imposing a moratorium on new services

7. Drought rate structures and surcharges (if applicable) Suppliers may activate drought rate structure or surcharges, if applicable, to encourage conservation. This may include tiered pricing increases (disincentives) for large water users as well as rate decreases (incentives) for conserving users.

8. Use of non-potable water supplies
Suppliers shall encourage water recycling and reuse to substitute potable water supplies with non-potable supplies for uses that are approved and permitted. To free up potable supplies, suppliers may consider non-potable supplies including greywater, recirculated water, and recycled treated wastewater.

9. Backup and emergency water supply readiness
If applicable, suppliers shall take measures to be prepared to activate or deploy backup and emergency water supplies when needed.

COUNCIL

MEETING
DATE

COUNCIL
MEMBER

REQUEST DETAIL DIRECTOR(S)
ACTION TAKEN: Memo; Staff
Report; Closed Session;
Presentation; Follow-up
Meeting; City Manager
Reports; Informal Action

DISCUSSION
ITEM
ACTION

ITEM DATE
STATUS:

Complete;
Pending;
On-going;
In-Progress
3/23/2021 Lutz Explore Possible Dog Park P. Yugar Follow-up Meeting On-going 5/25/2021
City Council Translate the Profile into Both English &
Spanish
Direction provided to explore
maintaining 10 editions with
full Spanish translation and
potential digital only.

P. Yugar
Staff Report 7/13/2021
10/26/21
1/25/22
2/8/22
Completed
Lara/Elias Term limits Set 12-year term limits for
City Council Members A. Glasman Memo to City Council
June
Nov '22 Pending
Lara/Lutz Lobbying Ban Set 10-year policy for banning
lobbying contracts to former
employees and City officials
A. Glasman
Discuss at retreat 4/30/22 8/10/2021 Pending
Lutz/Lara Shopping Cart Ordinance Review ordinance M. Garcia Discussion 2/22/2022 8/24/2021 Pending Elias/Lara Code of Ethics Review policy A. Glasman Discussion 2/22/2022 10/26/2021 Completed 9/28/2021
Elias/Lutz Mayor Elias Resolutions Review current ordinances for updates A. Glasman
2/22/2022 10/26/2021
1/25/2022
3/8/2022
Completed
10/26/2021 Sanchez/Lara Protestors Develop an ordinance protecting against bullying A. Glasman Pending
11/9/2021 Elias/Lara Veteran Resources Center Establish a Veterans Commission
M. Garcia
Discussion √ 12/14/2022 Completed
Camacho/Lara Rename Street Suggest changing street name near the Sports Arena to
Avenida Vicente Fernandez
Road
Ad Hoc Committee 5/10/2022 Pending

GOOD OF THE ORDER
7/13/2021
8/10/2021

COUNCIL

MEETING
DATE

COUNCIL
MEMBER

REQUEST DETAIL DIRECTOR(S)
ACTION TAKEN: Memo; Staff
Report; Closed Session;
Presentation; Follow-up
Meeting; City Manager
Reports; Informal Action

DISCUSSION
ITEM
ACTION

ITEM DATE
STATUS:

Complete;
Pending;
On-going;
In-Progress

GOOD OF THE ORDER
2/8/2022
Elias/Sanchez Heros Recognition Recognize organizations for their work during the
pandemic
Staff to define list of honorees
to present at a Council meeting
Pending
Lutz/Lara Senior Center Available office space for
Veterans Resource Center
Staff to follow-up and advise
on best facility to be utilized √
Lutz/Lara Buyers Incentive Discount to first responders who purchase homes in Pico
Rivera
Discuss at retreat
√
4/30/2022
4/12/2022 Lara/Elias Districts Discuss voting districts within the city
Discussion at a future meeting √ Pending
Lara/Camacho EV Charging Stations Locate possible sites to place electrical vehicle charging
stations
Lutz/Elias Revenue Generation Explore revenue generation opportunities in the City
6/14/2022
Elias Special Training Facilities Identify available facilities for training purposes
Elias/Camacho Sports Presentation given by ERHS Athletic Director
Agendize presentation
3/8/2022
5/10/2022