Agenda packet — Pico Rivera City Council, July 28, 2026 (part 3 of 3)

Discussion:

The State's new Trash Amendment requires "full-capture" screening of storm water catch basins and inlets. The City of Pico Rivera (City) seeks to continue to work toward Best Management Practice (BMP) objectives by installing Connector Pipe Screens (CPS) in our storm drain catch basins. The City’s Catch Basin project proposes the installation of 66 CPS and 78 Automatic Retractable Screens (ARS) debris collection devices citywide.

The installation of the proposed CPS units will be an instrumental benefit of protecting stormwater infrastructure, improving water quality and reducing flood risk.

Staff developed specifications and contract documents, which are available for review at the Public Works Department.

On May 28, 2026, the Notice Inviting Bids (NIB) was posted on Planet Bids through the City’s website and on June 5, 2026, the NIB was advertised in the Cerritos Newspaper.

On June 30, 2026, a total of three (3) bids were received via Planet Bids and publicly opened on the City’s approved electronic platform. The following summarizes the bids received:

CONSTRUCTION COMPANY TOTAL BID
AMOUNT

1. G2 Construction, Inc. $213,592

2. United Storm Water, Inc $ 256,301

3. Downstream Services, Inc. $ 294,909
Staff completed the bid analysis and determined G2 Construction, Inc., to be the apparent low and responsible bidder. Staff verified G2 Construction, Inc., references and found their past performance on jobs of similar size and scope to be satisfactory. G2 Construction, Inc., has performed similar work for the Cities of Whittier, La Mirada, Cerritos, Fountain Valley, and Anaheim. Their bid, bonds, and insurance documents are in order, and their contractor’s license is current.

The Notice of Intent to Award this project was published on July 16, 2026. The bid protest period expired after seven (7) days on July 23, 2026. No written bid protests were received. Project management and inspection services will be handled in-house by the Engineering and Water Authority staff.

The anticipated schedule for the project is as follows:
• Award Construction …………..… July 2026
• Start Construction ………………. September 2026
• Complete Construction …………. November 2026
The total project budget is summarized as follows:

CITY COUNCIL AGENDA REPORT – MEETING OF JULY 28, 2026
PICO RIVERA CATCH BASIN RETROFIT PROJECT, CIP NO. 50049

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Expenditure Plan Amount
Design $54,300
Construction $213,592.50
Contingency (10%) $21,360
Construction Management and Inspection (In-House) $50,000 Project Administration $50,000
Total Estimated Project Cost: $389,252.50
Budget Estimated Budget
Measure W (Fund 209) $595,000
Total Project Budget: $595,000
The total estimated project cost of $389,252.50 is below the project budget of $595,000.

Upon project completion, any remaining funds will be returned to their respective fund balances and made available for allocation to future projects.

Environmental Analysis:

The project has been reviewed for environmental compliance. Pursuant to the CEQA guidelines, this Project is categorically exempt under Class 1 Section 15301(c) for existing facilities (Enclosure 2). Under CEQA, a project is exempt if the scope of work is limited to the repair, maintenance, reconstruction or minor alterations of an existing street.

Conclusion:

Staff recommend award of a construction contract to G2 Construction, Inc., in an amount not to exceed $213,592.50. and authorize the City Manager, or his designee, to approve change orders, as necessary, in an amount not to exceed $21,360 (approximately 10% of the contract amount) to provide a construction contingency. Staff also recommend approval of the Notice of Exemption (NOE) for the subject project and authorize the City Clerk to file the NOE with the County Recorder, in accordance with the California Environmental Quality Act.

Steve Carmona
SC:NN:GE:AHT:np
Enclosure(s):1) Construction Contract
2) Notice of Exemption

CITY OF PICO RIVERA CONTRACT FOR

PICO RIVERA CATCH BASIN RETROFIT PROJECT
CIP NO. 50049
THIS CONTRACT (“Contract”) is made and entered this 28th day of July, 2026 (“Effective Date”), by and between the CITY OF PICO RIVERA, a California municipal corporation (“City”) and G2 Construction, Inc., a California corporation (“Contractor”). The Contractor’s California State Contractor’s license number is 801253.

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

1. Contract Documents. The Contract Documents consist of this Contract, the Notice Inviting Bids, Instructions to Bidders, Bid Proposal (including documentation accompanying the Bid Proposal and any post-Bid Proposal documentation submitted before the Notice of Award), the Bonds, permits from regulatory agencies with jurisdiction, General Provisions, Special Provisions, Plans, Standard Plans, Standard Specifications, Reference Specifications, Addenda, Change Orders, and Supplemental Agreements. In the event there is a conflict between the terms of the Contract Documents, the more specific or stringent provision shall govern. City shall decide which option is the more specific or stringent provision. The Contract Documents are attached hereto and incorporated herein by reference.

2. Scope of Services. The Contractor shall perform and provide all materials, tools, equipment, labor, and services necessary to complete the Work in a good and workmanlike manner for the project identified as Pico Rivera Catch Basin Retrofit Project 2026, CIP No. 50049 (“Project”), as described in the Contract Documents.

3. Compensation.

3.1 Contract Price and Basis for Payment. In consideration for the Contractor’s full, complete, and timely performance of the Work required by the Contract Documents, the City shall pay the Contractor for the actual quantity of Work required under the Bid Items awarded by the City performed in accordance with the lump sum prices and unit prices for Bid Items, set forth in the Bidder’s Bid Schedule submitted with the Bid Proposal. The sum of the unit prices and lump sum prices for the Bid Items, awarded by the City is Two Hundred Thirteen Thousand Five Hundred Ninety Two Dollas and Fifty Cents ($213,592.50) (“Contract Price”). It is understood and agreed that the quantities set forth in the Bidder’s Proposal for which unit prices are fixed are estimates only and that the City will pay and the Contractor will accept, as full payment for these items of work, the unit prices set forth in the Bidder’s Proposal multiplied by the actual number of units performed, constructed, or completed as directed by the Engineer

3.2 Payment Procedures. Based upon applications for payment submitted by the Contractor to the City, the City shall make payments to the Contractor in accordance with Section 7 of the Standard Specifications, as modified by Section 7 of the General Provisions.

Enclosure 1
10a
Back to Agenda Outline
Contract
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3.3 Substitution of Securities. Pursuant to Public Contracts Code Sec. 22300 Contractor shall be allowed to substitute securities for any moneys withheld by the City to ensure performance under a contract, 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 contract, the securities shall be returned to the Contractor.

4. Contract Time.

4.1 Initial Notice to Proceed. The City shall issue the “Notice to Proceed to Fulfill Preconstruction Requirements and Order Materials.” The date specified in the Notice to Proceed to Fulfill Preconstruction Requirements and Order Materials constitutes the date of commencement of the Contract Time of __60__ Working Days. The Contract Time includes the time necessary to fulfill preconstruction requirements, place the order for materials, and to complete construction of the Project (except as adjusted by subsequent Change Orders).

The Notice to Proceed to Fulfill Preconstruction Requirements and Order Materials shall further specify that the Contractor must complete the preconstruction requirements and order materials within __5___ Working Days after the date of commencement of the Contract Time; this duration is part of the Contract Time.

Preconstruction requirements include, but are not limited to, the following:
• Submitting and obtaining approval of Traffic Control Plans • Submitting and obtaining approval of critical required submittals • Obtaining an approved no fee Encroachment Permit
• Obtaining a Temporary Use Permit for a construction yard, if any • Notifying all agencies, utilities, residents, etc., as outlined in the Contract Documents

4.2 Notice to Proceed with Construction. After all preconstruction requirements are met and materials have been ordered in accordance with the Notice to Proceed to Fulfill Preconstruction Requirements and Order Materials, the City shall issue the “Notice to Proceed with Construction,” at which time the Contractor shall diligently prosecute the Work, including corrective items of Work, day to day thereafter, within the remaining Contract Time.

5. Liquidated Damages for Delay and Control of Work.

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5.1 Liquidated Damages. The Contractor and the City have agreed to liquidate damages pursuant to Section 6-9 of the General Provisions.

6. Early Completion.

Not applicable.

7. Work After Stop Work Notice. Any work completed by the Contractor after the issuance of a Stop Work Notice by the City shall be rejected and/or removed and replaced as specified in the applicable Section of the Special Provisions.

8. Antitrust Claims. In entering into this Contract, the Contractor offers and agrees to assign to the City all rights, title, and interest in and to all causes of action it may have under Section 4 of the Clayton Act (15 U.S.C. Sec.§ 15) or under the Cartwright Act (Business and Professions Code Section 16700 et seq.) arising from purchases of goods, services, or materials pursuant to the Contract. This assignment shall be made and become effective at the time the City tenders final payment to the Contractor without further acknowledgment by the parties.

9. Prevailing Wages. The City and the Contractor acknowledge that the Project is a public work to which prevailing wages apply. Public Works projects shall be subject to the prevailing wage requirements of the California Labor Code Sections 1720 et seq.

10. Workers’ Compensation. 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 Labor Code Section 1861, by signing this Contract, the Contractor certifies as follows:
“I am aware of the provisions of Section 3700 of the Labor Code which require every employer to be insured against liability for workers’ compensation or to undertake self-insurance in accordance with the provisions of that Code, and I will comply with such provisions before commencing the performance of the Work of this Contract.”

11. Miscellaneous Statutory Requirements.

11.1. Contractor License. Contractor shall possess a California contractor’s license type for the performance of the Project.

11.2 Ineligible Contractor Prohibited. Any contractor or subcontractor who is ineligible to perform work on a public works project pursuant to Section 1777.1 or 1777.7 of the Labor Code is prohibited from performing work under this Contract.

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project (submitted on or after March 1, 2015) unless registered with the Department of Industrial Relations pursuant to Labor Code section 1725.5. No prime contractor or subcontractor may be awarded a contract for public work on a public works project (awarded on or after April 1, 2015) unless registered with the Department of Industrial Relations pursuant to Labor Code section 1725.5. The Contractor will be required to post job site notices as described in 8 California Code of Regulation section 16451(d).

11.4 Trenches, Excavations and Unknown Conditions. Pursuant to California Public Contract Code Section 7104, in the event the work included in this Contract requires excavations more than four (4) feet in depth, the following shall apply. (a) Contractor shall promptly, and before the following conditions are disturbed, notify City, in writing, of any: (1) material that Contractor believes may be material that is hazardous waste, as defined in Section 25117 of the Health and Safety Code, that is required to be removed to a Class I, Class II, or Class III disposal site in accordance with provisions of existing law; (2) Subsurface or latent physical conditions at the site different from those indicated; or (3) Unknown physical conditions at the site of any unusual nature, different materially from those ordinarily encountered and generally recognized as inherent in work of the character provided for in the Contract. (b) City shall promptly investigate the conditions, and if it finds that the conditions do materially so differ, or do involve hazardous waste, and cause a decrease or increase in Contractor’s cost of, or the time required for, performance of any part of the work shall issue a change order per Section 2-7.1 of the General Provisions. (c) That, in the event that a dispute arises between City and Contractor whether the conditions materially differ, or involve hazardous waste, or cause a decrease or increase in Contractor’s cost of, or time required for, performance of any part of the work, Contractor shall not be excused from any scheduled completion date provided for by the contract but shall proceed with all work to be performed under the contract. Contractor shall retain any and all rights provided either by contract or by law which pertain to the resolution of disputes and protests between the contracting parties.

11.5 Trench and Pipeline Safety. If this Contract is for more than $25,000 and involves excavation of any trench five feet or more in depth, the Contractor shall submit a detailed plan of shoring, bracing, sloping or other provisions to be made for worker protection in accordance with Labor Code Section 6705. Such plan shall be approved by a qualified representative of the City.

11.6 Utility 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 invitation for bids or specifications. 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 liquidated damages for delay arising from the removal or relocation of such unidentified utility facilities.

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11.7 Third Party Claims Notification. The City shall timely notify the Contractor in writing of any third party claims relating to the Contract.

11.8 Unfair Business Practices Claims. The Contractor or subcontractor offers and agrees to assign to the City all rights, title, and interest in and to all causes of action it may have under Section 4 of the Clayton Act (15 U.S.C. Section 15) or under the Cartwright Act (Chapter 2, (commencing with Section 16700) of Part 2 of Division 7 of the Business and Professions Code), arising from purchases of goods, services or materials pursuant to the public works contract or the subcontract. This assignment shall be made and become effective at the time the City renders final payment to the Contractor without further acknowledgment by the parties. (Section 7103.5, California Public Contract Code.).

11.9 Day’s Work. Contractor acknowledges that under California Labor Code sections 1810 and following, 8 hours of labor constitutes a legal day’s work. Contractor will forfeit as a penalty to City the sum of $25.00 for each worker employed in the execution of this Contract by Contractor or any subcontractor for each calendar day during which such worker is required or permitted to work more than 8 hours in any one calendar day and 40 hours in any one calendar week in violation of the provisions of Labor Code section 1810. (Labor Code § 1813).

11.10 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:
(1) The presence of any material that the Contractor believes is hazardous waste, as defined in Section 25117 of the Health and Safety Code; (2) Subsurface or latent physical conditions at the site differing from those indicated in the specifications; or,
(3) 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 Contract.

Pending a 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 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.

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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.

11.11 Payroll Records. Contractor shall maintain the certified payroll records required by Labor Codes Sec. 1776 and shall report such records directly to the California Labor Commissioner as required by Labor Code Sec. 1771.4. Contractor and any subcontractor shall (1) keep accurate 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 shall inform the City of the location of the records enumerated under Labor Code Sec. 1776, including the street address, city, and county, and shall, within five working days, provide a notice of a change of location and address. 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. Upon the request of the Division of Labor Standards Enforcement, these penalties shall be withheld from progress payments then due.

11.12 Employment of Apprentices. Nothing in this Contract prevents Contractor or any subcontractor from employing properly registered apprentices in the execution of the Contract. Contractor is responsible for compliance with Labor Code section 1777.5 for all apprenticeable occupations. This statute requires that contractors and subcontractors must submit contract award information to the applicable joint apprenticeship committee, must employ apprentices in apprenticeable occupations in a ratio of not less than one hour of apprentice’s work for every five hours of labor performed by a journeyman (unless an exception is granted under §1777.5), must contribute to the fund or funds in each craft or trade or a like amount to the California Apprenticeship Council, and that contractors and subcontractors must not discriminate among otherwise qualified employees as apprentices solely on the ground of sex, race, religion, creed, national origin, ancestry or color. Only apprentices defined in Labor Code section 3077, who are in training under apprenticeship standards and who have written apprentice contracts, may be employed on public works in apprenticeable occupations.

11.13 Records and Inspection. Contractor shall maintain full and accurate records with respect to all matters covered under this Agreement for a period of three years after the expiration or termination of this Agreement. City shall have the right to access and examine such records, without charge, during normal business hours. City shall further have the right to audit such records, to make transcripts therefrom and to inspect all program data, documents, proceedings, and activities.

11.14 Ownership of Intellectual Property . All reports, documents or other written material (“written products”) developed by Contractor in the performance of this Contract
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Agreement shall be and remain the property of City without restriction or limitation upon its use or dissemination by City. Contractor may take and retain copies of such written products as desired, but no such written products shall be the subject of a copyright application by Contractor. If any state, federal, or local law requires mandatory copyright protection for Contractor’s work product, City shall comply with such laws to the extent feasible.

11.15 Urban Runoff. Contractor shall implement and maintain activity specific Best Management Practices (BMPs) to prevent pollutant loading from stormwater and nonstormwater discharges to receiving waters as required in Municipal NPDES Permit No.

CAS004004. Contracting staff whose primary job duties are related to implementation of BMPs shall be adequately trained to effectively implement, operate, and maintain such BMPs and must be versed in factors affecting BMP effectiveness. Contractor shall certify they have received all applicable training to implement the requirements in Municipal NPDES Permit No. CAS004004 and shall provide documentation to that effect.

12. Termination.

12.1. Termination for Convenience. The City may terminate this contract, in whole or in part, with 30 days written notice to the Contractor when it is in the City’s best interest. The Contractor shall be paid its costs, including contract close-out costs, and profit on work performed up to the time of termination. The Contractor shall promptly submit its termination claim to City to be paid the Contractor. If the Contractor has any property in its possession belonging to the City, the Contractor will account for the same, and dispose of it in the manner the City directs. The Contractor may terminate this Contract, in whole, with 90 days written notice to the City.

12.2 Termination for Default. 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.

12.3 Waiver of Remedies for any Breach. 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. Titles. The titles used in this Contract are for convenience only and shall in no way define, limit or describe the scope or intent of this Contract or any part of it.

14. Authority. Any person executing this Contract on behalf of the Contractor warrants and represents that he or she has the authority to execute this Contract on behalf of the Contract
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Contractor and has the authority to bind the Contractor to the performance of its obligations hereunder.

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

16. Attorney’s 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.

17. Independent Contractor - The Contractor is and shall at all times remain as to the City, a wholly independent contractor. Neither the City, nor any of its officers, employees or agents shall have control over the conduct of the Contractor or any of the Contractors’ officers, employees or agents, except as herein set forth. The Contractor shall not at any time or in any manner represent that it or any of its officers, employees or agents are in any manner officers, employees or agents of the City, nor shall City officers, employees or agents be deemed the officers, employees, or agents of Contractor as a result of this Contract. The Parties further acknowledge the following: (i) that Contractor shall provide the services outlined in the Scope of Services directly to City; (ii) Contractor maintains a business location at the address listed under Section 19 that is separate and distinct from the City; (iii) Contractor contracts with other businesses to provide the same or similar services and maintains a clientele without restriction from the City; (iv) Contractor advertises and holds itself out to the public as available to provide the same or similar services; (v) unless otherwise specified in this Contract, Contractor provides its own tools, vehicles, and equipment necessary for performing the Scope of Services; (vi) Contractor has proposed and negotiated its own rates; and (vii) consistent with the nature and demands of the project and the City’s business hours and City staff availability, Contractor may set its own hours and location of work.

18. Notice. Any notice, demand, request, document, consent, approval, or communication either party desires or is required to give to the other party or any other person shall be in writing and shall be deemed to be given when served personally or deposited in the U.S. Mail, prepaid, first-class mail, return receipt requested, addressed as follows:

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To City: City of Pico Rivera
6615 Passons Boulevard
Pico Rivera, California 90660
Attention: Noe Negrete, Director of Public Works
To Contractor: G2 Construction, Inc.
1352 E. Borchard Ave.

Santa Ana, CA 92705
Attention: John R. Alvarado, President

19. Prohibition Against Assignment. The experience, knowledge, capability and reputation of Contractor, its principals and employees were a substantial inducement for the City to enter into this Contract. Neither this Contract nor any interest herein may be transferred, assigned, conveyed, hypothecated or encumbered voluntarily or by operation of law, whether for the benefit of creditors or otherwise, without the prior written approval of City. Transfers restricted hereunder shall include the transfer to any person or group of persons acting in concert of more than twenty-five percent (25%) of the present ownership and/or control of Contractor, taking all transfers into account on a cumulative basis. In the event of any such unapproved transfer, including any bankruptcy proceeding, this Contract shall be void. No approved transfer shall release the Contractor or any surety of Contractor of any liability hereunder without the express consent of City.

20. Counterparts. This Contract may be executed in counterpart originals, duplicate originals, or both, each of which is deemed to be an original for all purposes. [Signatures on following page]
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IN WITNESS WHEREOF, the parties hereto have executed this Contract the day and year first above written.

CITY OF PICO RIVERA
By:

Gustavo V. Camacho, Mayor
ATTEST: APPROVED AS TO FORM:

By: By:

Cynthia Ayala, City Clerk Arnold M. Alvarez-Glasman, City Attorney Dated: Dated:
(“CONTRACTOR”)
By:

John R. Alvarado , President
By:

Lydia G. Alvarado , Secretary

PROOF OF AUTHORITY TO BIND

CONTRACTING PARTY REQUIRED
Bond No. __________

PAYMENT BOND
(LABOR AND MATERIALS)
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:

PICO RIVERA CATCH BASIN RETROFIT PROJECT – CIP NO. 50049 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 Public Agency 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 Public Agency 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 ________________________________________________________ Dollars ($___________________), for materials furnished or labor thereon of any kind, or for amounts due under the Unemployment Insurance Act, or for any amounts required to be deducted, withheld and paid over to the Employment Development Department from the wages of employees of the contractor and subcontractors pursuant to Section 13020 of the Unemployment Insurance Code 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 Public Agency 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 B-2
(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 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:

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“Principal”
Signature:

Print Name:

Title:

Date:

Signature:

Print Name:

Title:

Date:
(Seal)
“Surety”
Signature:

Print Name:

Title:

Date:
(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. DATE OF BOND MUST NOT BE BEFORE 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.

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Bond No. __________

PERFORMANCE BOND
KNOW ALL PERSONS BY THESE PRESENTS that:

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

PICO RIVERA CATCH BASIN RETROFIT PROJECT – CIP NO. 50049 WHEREAS, Principal is required under the terms of the Contract to furnish a Bond for the faithful performance of the Contract.

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 Public Agency in the penal sum of __________________________________________________ Dollars ($_________________), this amount being not less than the total Contract Price, in lawful money of the United States of America, for the payment of which sum well and truly to be made, we bind ourselves, our heirs, successors executors and administrators, jointly and severally, firmly by these presents.

THE CONDITION OF THIS OBLIGATION IS SUCH THAT, if the hereby bounded Principal, his, her or its heirs, executors, administrators, successors or assigns, shall in all things stand to and abide by, and well and truly keep and perform the covenants, conditions and provisions in the Contract and any alteration thereof made as therein provided, on the Principal’s part, to be kept and performed at the time and in the manner therein specified, and in all respects according to their true intent and meaning, and shall indemnify and save harmless the Public Agency, its officers, agents and employees, as therein stipulated, then this obligation shall become null and void; otherwise, it shall be and remain in full force and effect.

As a part of the obligation secured hereby and in addition to the face amount specified therefor, there shall be included costs and reasonable expenses and fees, including reasonable attorneys’ fees, incurred by Public Agency in successfully enforcing such obligation, all to be taxed as costs and included in any judgment rendered. Surety hereby waives any statute of limitations as it applies to an action on this Bond.

B-5
The Surety hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of the Contract or of the Work to be performed thereunder or the specifications accompanying the same shall in anywise affect its obligations under this Bond, and it does hereby waive notice of any such change, extension of time, alteration or addition to the terms of the Contract or to the Work or to the specifications. Surety hereby waives the provisions of California Civil Code Sections 2845 and 2849. The City is the principal beneficiary of this Bond and has all rights of a party hereto.

Dated:
“Principal”
Signature:

Print Name:

Title:

Date:

Signature:

Print Name:

Title:

Date:
(Seal)
“Surety”
Signature:

Print Name:

Title:

Date:
(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. DATE OF BOND MUST NOT BE BEFORE DATE OF B-6
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.

B-7
Bond No. __________

WARRANTY BOND
KNOW ALL PERSONS BY THESE PRESENTS that:

PICO RIVERA CATCH BASIN RETROFIT PROJECT – CIP NO. 50049 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 warranty Bond with the Public Agency before final completion of the work and its acceptance by the Public Agency.

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 Public Agency in the penal sum of __________________________________________________ Dollars ($_______________), lawful money of the United States of America, for the payment of which sum well and truly to be made, we bind ourselves, our heirs, executors, administrators, successors, and assigns, jointly and severally, firmly by these presents.

THE CONDITION OF THIS OBLIGATION IS SUCH THAT, if the hereby bounded Principal, his, her or its heirs, executors, administrators, successors or assigns, shall remedy, without cost to the Public Agency, any defects which may develop during a period of one year from the date of completion and acceptance of the work performed under the Contract, caused by defective or inferior materials or workmanship, and shall indemnify, defend and hold harmless the Public Agency, its officers, agents, and employees for any and all claims, demands, causes of action, damages, injuries, liabilities, losses, costs or expenses, including attorneys’ fees and costs of defense, which arise out of, pertain to, or relate to such defects or to the Principal’s actions or inactions in remedying such defects, then this obligation shall become null and void; otherwise it shall be and remain in full force and effect.

B-8
In case suit is brought upon this bond, Surety further agrees to pay, in addition to the Penal Sum, all costs and reasonable expenses and fees, including reasonable attorneys’ fees, incurred by the Public Agency in successfully enforcing such obligation, all to be taxed as costs and included in any judgment rendered.

FURTHER, Surety hereby waives the provisions of California Civil Code sections 2845 and 2849. The Public Agency is the principal beneficiary of this bond and has all rights of a party hereto.

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

Dated:

B-9
“Principal”
Signature:

Print Name:

Title:

Date:

Signature:

Print Name:

Title:

Date:
(Seal)
“Surety”
Signature:

Print Name:

Title:

B-10
WORKERS’ COMPENSATION

CERTIFICATE OF INSURANCE
PICO RIVERA CATCH BASIN RETROFIT PROJECT – CIP NO. 50049 PROJECT NO. 50049
WHEREAS, the City of PICO RIVERA (“City”) has required certain insurance to be provided by:

NOW THEREFORE, the undersigned insurance company does hereby certify that it has issued the policy or policies described below to the following named insureds and that the same are in force at this time:

1. This certificate is issued to:

City of Pico Rivera
City Hall
6615 Passons Boulevard
Pico Rivera, California 90660
The insureds under such policy or policies are:

2. Workers’ Compensation Policy or Policies in a form approved by the Insurance Commissioner of California covering all operations of the named insureds as follows:

Policy Number Effective Date Expiration Date
By:

Its Authorized Representative
Notice of Exemption Appendix E
Revised 2011
To: Office of Planning and Research
P.O. Box 3044, Room 113
Sacramento, CA 95812-3044
County Clerk
County of: __________________
___________________________
___________________________
From: (Public Agency): ____________________________
_______________________________________________
_______________________________________________
(Address)
Project Title: ________________________
________________________________
__________ __________
Name of Public Agency Approving Project: _____________________________________________________ Name of Person or Agency Carrying Out Project: ________________________________________________ Exempt Status: (check one):

Ministerial (Sec. 21080(b)(1); 15268);

Declared Emergency (Sec. 21080(b)(3); 15269(a));

Emergency Project (Sec. 21080(b)(4); 15269(b)(c));
Categorical Exemption. State type and section number: ____________________________________ Statutory Exemptions. State code number: ______________________________________________ ___________

1. Attach certified document of exemption finding.

2. Has a Notice of Exemption been filed by the public agency approving the project? ҏ Yes
No
Signature: ____________________________ Date: ______________ Title: _______________________

Signed by Lead Agency
Signed by Applicant
Authority cited: Sections 21083 and 21110, Public Resources Code. Date Received for filing at OPR: _______________ Reference: Sections 21108, 21152, and 21152.1, Public Resources Code.

City of Pico Rivera
6615 Passons Boulevard
Pico Rivera, CA 90660
Los Angeles
12400 Imperial Highway
Norwalk, CA 90650
Noe Negrete, Director of Public Works
Pico Rivera Los Angeles
City of Pico Rivera
Noe Negrete, Director of Public Works
Class 1 - Section 15301(c)
Noe Negrete
Director of Public Works
Print Form
Project Location - City: ____________ Project Location - County: ___________ Description of Nature, Purpose and Beneficiaries of Project:

The installation of the proposed devices will be an instrumental benefit as a water protection device within priority land use areas.

Reasons why project is exempt:

Project consists of the installation of connector pipe screens and automatic retractable screens debris collection devices throughout the City of Pico Rivera as a water protection device within priority land use areas.

Lead Agency
Contact Person: _________________ Area Code/Telephone/Extension: 562-801-4421 _______________
If filed by applicant:

Project Applicant: ________________________________________ Project Location - Specific:

Installation of connector pipe screens and automatic retractable screens debris collection devices throughout the City of Pico Rivera, as depicted on the CIP 50049 construction contract documents.

CIP 50049 Pico Rivera Catch Basin Retrofit Project 2026 Enclosure 2
10b
To: Mayor and City Council
From: City Manager
Meeting Date: July 28, 2026
Subject: CITYWIDE RESURFACING AND RECONSTRUCTION PROJECT, CIP NO. 50106
Recommendation:

1. Approve the plans and specifications for the Citywide Resurfacing and Reconstruction Project, CIP No. 50106 (Project);

2. Find that Sequel Contractors, Inc., the apparent low bidder, is non-responsible based on the contractor's failure to demonstrate the trustworthiness required under California Public Contract Code Section 1103, this includes the failure to disclose a prior bidding debarment/settlement by the cities of La Mirada and La Cañada Flintridge in the Contractor's Statement.

3. Reject the bid submitted by Sequel Contractors, Inc.

4. Award a construction contract for a not-to-exceed amount of $8,025,049 to Onyx Paving Company, Inc., the lowest responsive and responsible bidder for the Project; and authorize the City Manager to execute the contract in a form approved by the City Attorney;

5. Authorize the City Manager, or his designee, to approve change orders, as needed, in an amount not-to-exceed $802,505 (approximately 10% of the total contract amount) for construction contingency; and

6. Approve the Notice of Exemption (NOE) for the subject project (Enclosure 2) and authorize the City Clerk to file the NOE with the County Recorder, in accordance with the California Environmental Quality Act (CEQA).

Strategic Priority:
3 - Infrastructure - Plan, fund, build, and maintain reliable and cost-effective infrastructure that contributes to enhancing quality of life.
11 Back to Agenda Outline
CITY COUNCIL AGENDA REPORT – MEETING OF JULY 28, 2026
CITYWIDE RESURFACING AND RECONSTRUCTION. PROJECT, CIP NO. 50106

Page 2 of 7 ends

Strategy:

3.3 Complete construction of necessary infrastructure projects to implement master plans in a timely manner.

Fiscal Impact:

The fiscal year (FY) 2026-27 Adopted Budget includes appropriations for the Citywide Resurfacing and Reconstruction Project, CIP No. 50106 in the amount of $4,102,312 in Capital Improvement Funds (Account No.400.70.7300-54500-CIP50166), $4,078,539 in SB1 Funds (Account No. 202.70.7300-54500-CIP50106), $1,446,000 in Certificate of Participation (COP) Funds (Account No. 305.70.7300-54500-CIP50106), $1,500,000 in Prop C Funds (Account No. 206.70.7300-54500-CIP50106), $700,000 in Measure R Funds (Account No. 207.70.7300-54500-CIP50106), $300,000 in Measure W Funds (Account No. 209.70.7300-54500-CIP50106), and $186,322 in State Grant Funds (Account No. 699.70.7300-54500-CIP50106). The total project budget is $12,313,173.

No additional funding is required at this time.

Discussion:

The Capital Improvement Program (CIP) includes funding for citywide street resurfacing and reconstruction projects identified through the City of Pico Rivera's (City) adopted Pavement Management System. The purpose of this project is to preserve and improve the City's roadway network by extending pavement life, enhancing public safety, and reducing long-term maintenance costs.

The project includes resurfacing selected streets by grinding the existing pavement and placing a new asphalt concrete overlay. This treatment restores deteriorated pavement to good condition and significantly extends its service life. Street segments where pavement and underlying subgrade have deteriorated beyond the point where resurfacing is effective will be fully reconstructed through removal and replacement of the existing pavement structure. In addition, other selected streets will receive a cape seal surface treatment to further preserve pavement condition.

The project also includes replacement of damaged sidewalks, driveways, curb and gutter, reconstruction of cross gutters in areas prone to localized flooding, installation of new thermoplastic pavement striping, and replacement or upgrading of regulatory and warning signs as needed throughout the project limits.

In accordance with Federal Highway Administration requirements, all non-compliant Americans with Disabilities Act (ADA) curb ramps adjacent to resurfacing improvements must be upgraded to current accessibility standards. Accordingly, this project includes the reconstruction of approximately seventy-nine (79) curb ramps identified in the City's ADA Self-Evaluation and Transition Plan.

CITY COUNCIL AGENDA REPORT – MEETING OF JULY 28, 2026
CITYWIDE RESURFACING AND RECONSTRUCTION. PROJECT, CIP NO. 50106

Page 3 of 7 ends

Staff followed the Pavement Management Plan in selecting the streets for resurfacing and reconstruction. Planned utility improvements were also considered to avoid future pavement cuts in newly improved roadways. Based on this evaluation, the following street segments are proposed for improvement under this project:

PRIMARY STREET FROM STREET TO STREET

GRIND AND OVERLAY
Paramount Blvd Maxine St ~500' S/O Slauson Ave
Paramount Blvd ~575' S/O Trojan St ~450' N/O Trojan St & Rex Rd
Kilgarry Ave Rivera Rd Bascom St
Serapis Ave Call St Rex Rd
Passons Blvd Rex Rd Danbridge St
Bequette Ave Danbridge St North End
Washington Blvd E/O Crossway Dr At Wells Fargo
Washington Blvd Rosemead Blvd Passons Blvd
Rosemead Blvd Coffman Pico Rd (Intersection)
Balfour St Rosemead Blvd Lindsey Ave
Lock Alene Ave Homebrook St Balfour St
Rosemead Blvd Mines Ave Whittier Blvd
San Gabriel Pl Catherine St Verner St
Passons Blvd ~50' S/O Reichling Ln ~125' NE/O Reichling Ln Pico Vista Rd Havenwood St Underwood St
Paramount Blvd Holbrook St Whittier Blvd
Gangel Ave Beverly Blvd Tilmont St
Isora St Layman Ave Durfee Ave
San Gabriel River Pkwy ~1000' S/O Woodford St W/O Bridge Deck San Gabriel River Pkwy E/O Bridge Deck City Limits
Claymore St Serapis Ave Passons Blvd
La Docena Ln Hasty Ave Greenvale Ave
Glendola Dr Paramount Blvd Triton Dr

CAPE SEAL
Paramount Blvd Telegraph Rd Maxine St
Danbridge St Bequette Ave Rosemead Blvd
Citronell Ave Homebrook St Washington Blvd
Lemoran Ave Goodbee Ave Washington Blvd
Rosemead Blvd Washington Blvd Carron Ave
Bridgeview Ave Arma St Beverly Blvd
Beverly Blvd (Frontage Rd) Gangel Ave Sandoval Ave
Melita St Gangel Ave Sandoval Ave

FULL RECONSTRUCTION
Ponciana St Cord Ave Pico Vista Rd
Goodbee St Citronell Ave Lemoran Ave
Haney St Phaeton Ave Bollenbacher Dr
CITY COUNCIL AGENDA REPORT – MEETING OF JULY 28, 2026
CITYWIDE RESURFACING AND RECONSTRUCTION. PROJECT, CIP NO. 50106

Page 4 of 7 ends

Staff developed specifications and contract documents approved by the Public Works Director, which are available for review in the Public Works Department.

On May 28, 2026, the Notice Inviting Bids (NIB) was posted on Planet Bids through the City’s website and on June 5, 2026, the NIB was advertised in the Cerritos Newspaper.

On June 30, 2026, a total of eight (8) bids were received via Planet Bids and publicly opened on the City’s approved electronic platform. The following summarizes the bids received:

CONSTRUCTION COMPANY BASE BID
AMOUNT

ADDITIVE BID

AMOUNT TOTAL BID
AMOUNT

1. Sequel Contractors, Inc. $ 7,883,088 $1,249,400 $9,132,488

2. Onyx Paving Company, Inc $ 7,957,000 $1,179,999 $9,136,999

3. Hardy & Harper, Inc. $ 7,952,250 $1,377,750 $9,330,000

4. PALP DBA Excel Paving $ 8,583,640 $ 1,210,170 $9,793,810

5. All American Asphalt $ 8,821,022 $1,061,100 $9,882,122

6. Toro Enterprises, Inc. $ 8,603,098.87 $1,431,428.10 $10,034,527

7. Calmex Engineering, Inc. $ 8,476,050 $ 1,658,700 $10,134,750

8. Gentry Brothers, Inc. $10,214,139.60 $1,347,300 $11,561,4400 Staff determined that Sequel Contractors, Inc. (Sequel), the apparent low bidder, is nonresponsible. As part of the City's review and evaluation of the bids, staff reviewed all bid documents submitted by this contractor. During the review of the Contractor’s Statement (Pages B-9 to B-15 in the bid package) Staff discovered Sequel’s failure to disclose a prior bidding debarment/settlement by the cities of La Mirada and La Cañada Flintridge.

In response to Question No. 14 of the Contractor's Statement, which asks, "For all arbitrations, lawsuits, settlements and the like (in or out of court) that the company or any principal having an interest in this Bid Proposal has been involved with in the past five years?", Sequel Contractors, Inc., answered "n/a." However, Staff found documentation memorializing a settlement between Sequel Contractors, Inc. and the City of La Cañada Flintridge dated June 18, 2024, under which Sequel Contractors, Inc. agreed not to bid on City of La Cañada Flintridge public works projects for a period of five (5) years from the effective date of said agreement. In addition, staff found a Settlement Agreement with the City of La Mirada which documents that Sequel Contractors, Inc was involved in litigation with a subcontractor concerning nonpayment and a filing of a Stop Notice by the subcontractor. That case is entitled R.J. Noble v Sequel Contractors, Inc., et al, Los Angeles Superior Case No. 18NWCV00054. This litigation was not disclosed and also exhibits a lack of financial capacity. Staff determined that this prior settlement and bidding prohibition should have been disclosed in response to Question No. 14.

CITY COUNCIL AGENDA REPORT – MEETING OF JULY 28, 2026
CITYWIDE RESURFACING AND RECONSTRUCTION. PROJECT, CIP NO. 50106

Page 5 of 7 ends

In addition, response to Question No. 19 of the Contractor's Statement, which asks, "Has the company or any of its principals ever been debarred by any agencies?", Sequel Contractors, Inc. answered "No." However, staff discovered documentation memorializing an agreement between Sequel Contractors, Inc. and the City of La Mirada dated June 18, 2019 under which Sequel Contractors, Inc. agreed not to bid on City of La Mirada public works projects for a five year period. Staff determined that this prior bidding prohibition by the City of La Mirada should have been disclosed in response to Question No. 19.

Furthermore, the Settlement Agreement between Sequel Contractors Inc. and the City of La Cañada Flintridge includes a bidding prohibition for a period of five (5) years from the effective date of said agreement (recital No. 4). Staff determined that this prior bidding debarment by the City of La Cañada Flintridge should also have been disclosed in response to Question No. 19.

Based on Sequel’s failure to disclose the prior bidding prohibition and settlements involving the cities of La Mirada and La Cañada Flintridge, staff determined that Sequel Contractors, Inc. has not demonstrated the trustworthiness required of a responsible bidder and therefore recommends that the bidder be deemed non-responsible.

Following this determination, staff completed its review of the remaining bids and identified Onyx Paving Company, Inc. as the lowest responsive and responsible bidder.

Staff verified Onyx Paving Company, Inc.'s references and found its performance on projects of similar size and complexity to be satisfactory. The company has successfully completed projects for the Cities of Downey, Temple City, La Puente, and recently completed Pico Rivera City's Citywide Resurfacing and Reconstruction Project, CIP No. 50066. Staff also verified that Onyx Paving Company, Inc.'s bid proposal, bid bond, insurance documents, and contractor's license are complete, responsive, and in good standing.

The anticipated schedule for the project is as follows:
• Award Construction …………..… July 2026
• Start Construction ………………. August 2026
• Complete Construction …………. November 2026
CITY COUNCIL AGENDA REPORT – MEETING OF JULY 28, 2026
CITYWIDE RESURFACING AND RECONSTRUCTION. PROJECT, CIP NO. 50106

Page 6 of 7 ends

The total project budget is summarized as follows:

Expenditure Plan Amount
Design $206,172
Construction $8,025,049
Contingency (10%) $802,505
Estimated Construction Management and Inspection $275,558 Project Administration $75,000
Total Estimated Project Cost: $9,384,284
Budget Amount
Capital Improvement Funds (Fund 400) $4,102,312
SB1 Funds (Fund 202) $4,078,539
COP Fund (Fund 305) $1,446,000
Prop C Fund (Fund 206) $1,500,000
Measure R (Fund 207) $700,000
Measure W (Fund 209) $300,000
State Funds (Fund 699) $186,322
Total Project Budget: $12,313,173
The total estimated project cost is approximately $9.4 million, which is within the approved project budget of $12.3 million. Any unexpended project funds remaining upon completion of the project will be returned to their respective funding sources and made available for future capital improvement projects.

Environmental Analysis:

The project has been reviewed for compliance with CEQA. The proposed improvements are categorically exempt from CEQA pursuant to State CEQA Guidelines Section 15301(c) (Class 1 – Existing Facilities) . This exemption applies to projects involving the repair, maintenance, reconstruction, or minor alteration of existing streets and highways where there is no expansion of the existing use.

Conclusion:

Staff recommend that the City Council determine Sequel Contractors, Inc. to be nonresponsible, reject its bid, and award a construction contract to Onyx Paving Company, Inc., the lowest responsive and responsible bidder, in an amount not to exceed $8,025,049. Staff further recommend authorizing the City Manager or designee to approve construction change orders, as necessary, in an amount not to exceed $802,505 (approximately 10 percent of the contract amount) to address unforeseen field conditions and complete the project.

CITY COUNCIL AGENDA REPORT – MEETING OF JULY 28, 2026
CITYWIDE RESURFACING AND RECONSTRUCTION. PROJECT, CIP NO. 50106

Page 7 of 7 ends

Additionally, staff recommend that the City Council approve the Notice of Exemption (NOE) for the project and authorize the City Clerk to file the NOE with the Los Angeles County Recorder in accordance with the California Environmental Quality Act .

Steve Carmona
SC:NN:GE:AHT:np
Enclosure(s):1) Construction Contract
2) Notice of Exemption
3) Letter to Sequel Determination of Non-Responsibility 4) Sequel Construction, Inc Bid Proposal
5) Settlement Agreement with City of La Cañada Flintridge 6) Settlement Agreement with City of La Mirada

CITY OF PICO RIVERA CONTRACT FOR
CITYWIDE RESURFACING & RECONSTRUCTON PROJECT, CIP NO. 50106 THIS CONTRACT (“Contract”) is made and entered this 28th day of July 2026 (“Effective Date”), by and between the CITY OF PICO RIVERA, a California municipal corporation (“City”) and Onyx Paving Company Inc., a California corporation (“Contractor”). The Contractor’s California State Contractor’s license number is 630360.

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

2. Scope of Services. The Contractor shall perform and provide all materials, tools, equipment, labor, and services necessary to complete the Work in a good and workmanlike manner for the project identified as– Citywide Resurfacing and Reconstruction Project, CIP NO. 50106 (“Project”), as described in the Contract Documents.

3. Compensation.

3.1 Contract Price and Basis for Payment. In consideration for the Contractor’s full, complete, and timely performance of the Work required by the Contract Documents, the City shall pay the Contractor for the actual quantity of Work required under the Bid Items awarded by the City performed in accordance with the lump sum prices and unit prices for Bid Items, set forth in the Bidder’s Bid Schedule submitted with the Bid Proposal. The sum of the unit prices and lump sum prices for the Bid Items, awarded by the City is Eight Million, Twenty-Five Thousand, Forty- Nine Dollars ($8,025,049 (“Contract Price”). It is understood and agreed that the quantities set forth in the Bidder’s Proposal for which unit prices are fixed are estimates only and that the City will pay and the Contractor will accept, as full payment for these items of work, the unit prices set forth in the Bidder’s Proposal multiplied by the actual number of units performed, constructed, or completed as directed by the Engineer

Enclosure 1
11a
Back to Agenda Outline
Contract
ONYX PAVING COMPANY, INC.

Page 2 of 10 ends

4. Contract Time.

4.1 Initial Notice to Proceed. The City shall issue the “Notice to Proceed to Fulfill Preconstruction Requirements and Order Materials.” The date specified in the Notice to Proceed to Fulfill Preconstruction Requirements and Order Materials constitutes the date of commencement of the Contract Time of __80__ Working Days. The Contract Time includes the time necessary to fulfill preconstruction requirements, place the order for materials, and to complete construction of the Project (except as adjusted by subsequent Change Orders).

Preconstruction requirements include, but are not limited to, the following:
• Submitting and obtaining approval of Traffic Control Plans • Submitting and obtaining approval of the Stormwater Pollution Prevention Plan (SWPPP)/Water Pollution Control Plan (WPCP)
• Submitting and obtaining approval of critical required submittals • Installation of the approved Project Identification Signs • Obtaining an approved no fee Encroachment Permit
• Obtaining a Temporary Use Permit for a construction yard • Notifying all agencies, utilities, residents, etc., as outlined in the Contract Documents

Page 3 of 10 ends

Work, including corrective items of Work, day to day thereafter, within the remaining Contract Time.

5. Liquidated Damages for Delay and Control of Work.

5.1 Liquidated Damages. The Contractor and the City have agreed to liquidate damages pursuant to Section 6-9 of the General Provisions.

6. Early Completion.

Not applicable.

11. Miscellaneous Statutory Requirements.

11.1. Contractor License. Contractor shall possess a California contractor’s license type for the performance of the Project.

Contract
ONYX PAVING COMPANY, INC.

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11.3 Compliance with SB 854 Registration. This Project is subject to compliance monitoring and enforcement by the Department of Industrial Relations. No prime contractor or subcontractor may be listed on a bid proposal for a public works project (submitted on or after March 1, 2015) unless registered with the Department of Industrial Relations pursuant to Labor Code section 1725.5. No prime contractor or subcontractor may be awarded a contract for public work on a public works project (awarded on or after April 1, 2015) unless registered with the Department of Industrial Relations pursuant to Labor Code section 1725.5. The Contractor will be required to post job site notices as described in 8 California Code of Regulation section 16451(d).

11.4 Trenches, Excavations and Unknown Conditions. Pursuant to California Public Contract Code Section 7104, in the event the work included in this Contract requires excavations more than four (4) feet in depth, the following shall apply. (a) Contractor shall promptly, and before the following conditions are disturbed, notify City, in writing, of any: (1) material that Contractor believes may be material that is hazardous waste, as defined in Section 25117 of the Health and Safety Code, that is required to be removed to a Class I, Class II, or Class III disposal site in accordance with provisions of existing law; (2) Subsurface or latent physical conditions at the site different from those indicated; or (3) Unknown physical conditions at the site of any unusual nature, different materially from those ordinarily encountered and generally recognized as inherent in work of the character provided for in the Contract. (b) City shall promptly investigate the conditions, and if it finds that the conditions do materially so differ, or do involve hazardous waste, and cause a decrease or increase in Contractor’s cost of, or the time required for, performance of any part of the work shall issue a change order per Section 2-7.1 of the General Provisions. (c) That, in the event that a dispute arises between City and Contractor whether the conditions materially differ, or involve hazardous waste, or cause a decrease or increase in Contractor’s cost of, or time required for, performance of any part of the work, Contractor shall not be excused from any scheduled completion date provided for by the contract, but shall proceed with all work to be performed under the contract. Contractor shall retain any and all rights provided either by contract or by law which pertain to the resolution of disputes and protests between the contracting parties.

Contract
ONYX PAVING COMPANY, INC.

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11.7 Third Party Claims Notification. The City shall timely notify the Contractor in writing of any third party claims relating to the Contract.

Pending a determination by City of appropriate action to be taken, Contractor shall provide security measures (e.g., fences) adequate to prevent the hazardous waste or Contract
ONYX PAVING COMPANY, INC.

Page 6 of 10 ends

physical conditions from causing bodily injury to any person.

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.

Contract
ONYX PAVING COMPANY, INC.

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11.14 Ownership of Intellectual Property . All reports, documents or other written material (“written products”) developed by Contractor in the performance of this Agreement shall be and remain the property of City without restriction or limitation upon its use or dissemination by City. Contractor may take and retain copies of such written products as desired, but no such written products shall be the subject of a copyright application by Contractor. If any state, federal, or local law requires mandatory copyright protection for Contractor’s work product, City shall comply with such laws to the extent feasible.

12. Termination.

Contract
ONYX PAVING COMPANY, INC.

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

Page 9 of 10 ends

has proposed and negotiated its own rates; and (vii) consistent with the nature and demands of the project and the City’s business hours and City staff availability, Contractor may set its own hours and location of work.

To City: City of Pico Rivera
6615 Passons Boulevard
Pico Rivera, California 90660
Attention: Noe Negrete, Director of Public Works
To Contractor: Onyx Paving Company, Inc.
22707 La Palma Avenue
Yorba Linda, CA 92887
Attention: Anthony Steen, President

19. Prohibition Against Assignment. The experience, knowledge, capability and reputation of Contractor, its principals and employees were a substantial inducement for the City to enter into this Contract. Neither this Contract nor any interest herein may be transferred, assigned, conveyed, hypothecated or encumbered voluntarily or by operation of law, whether for the benefit of creditors or otherwise, without the prior written approval of City. Transfers restricted hereunder shall include the transfer to any person or group of persons acting in concert of more than twenty five percent (25%) of the present ownership and/or control of Contractor, taking all transfers into account on a cumulative basis. In the event of any such unapproved transfer, including any bankruptcy proceeding, this Contract shall be void. No approved transfer shall release the Contractor or any surety of Contractor of any liability hereunder without the express consent of City.

20. Counterparts. This Contract may be executed in counterpart originals, duplicate originals, or both, each of which is deemed to be an original for all purposes. .
[Signatures on following page]
Contract
ONYX PAVING COMPANY, INC.

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

CITY OF PICO RIVERA
By:

Gustavo V. Camacho, Mayor
ATTEST: APPROVED AS TO FORM:

By: By:

Cynthia Ayala, City Clerk Arnold M. Alvarez-Glasman, City Attorney Dated: Dated:
(“CONTRACTOR”)
By:

Anthony Steen, President
By:

Jay Kirschner, Secretary

PROOF OF AUTHORITY TO BIND

CONTRACTING PARTY REQUIRED
Bond No. __________

PAYMENT BOND
(LABOR AND MATERIALS)
KNOW ALL PERSONS BY THESE PRESENTS that:

CITYWIDE RESURFACING & RECONSTRUCTON PROJECT
CIP NO. 50106
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 Public Agency 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.

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.

Dated:
“Principal”
Signature:

Print Name:

Title:

Date:

Signature:

Print Name:

Title:

Date:
(Seal)
“Surety”
Signature:

Print Name:

Title:

Bond No. __________

PERFORMANCE BOND
KNOW ALL PERSONS BY THESE PRESENTS that:

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

CITYWIDE RESURFACING & RECONSTRUCTON PROJECT
CIP NO. 50106
WHEREAS, Principal is required under the terms of the Contract to furnish a Bond for the faithful performance of the Contract.

The Surety hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of the Contract or of the Work to be performed thereunder or the specifications accompanying the same shall in anywise affect its obligations under this Bond, and it does hereby waive notice of any such change, extension of time, alteration or addition to the terms of the Contract or to the Work or to the specifications. Surety hereby waives the provisions of California Civil Code Sections 2845 and 2849. The City is the principal beneficiary of this Bond and has all rights of a party hereto.

Dated:
“Principal”
Signature:

Print Name:

Title:

Date:

Signature:

Print Name:

Title:

Date:
(Seal)
“Surety”
Signature:

Print Name:

Title:

Bond No. __________

WARRANTY BOND
KNOW ALL PERSONS BY THESE PRESENTS that:

CITYWIDE RESURFACING & RECONSTRUCTON PROJECT
CIP NO. 50106
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 warranty Bond with the Public Agency before final completion of the work and its acceptance by the Public Agency.

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 Public Agency in the penal sum of __________________________________________________ Dollars ($_______________), lawful money of the United States of America, for the payment of which sum well and truly to be made, we bind ourselves, our heirs, executors, administrators, successors, and assigns, jointly and severally, firmly by these presents.

In case suit is brought upon this bond, Surety further agrees to pay, in addition to the Penal Sum, all costs and reasonable expenses and fees, including reasonable attorneys’ fees, incurred by the Public Agency in successfully enforcing such obligation, all to be taxed as costs and included in any judgment rendered.

FURTHER, Surety hereby waives the provisions of California Civil Code sections 2845 and 2849. The Public Agency is the principal beneficiary of this bond and has all rights of a party hereto.

Dated:
“Principal”
Signature:

Print Name:

Title:

Date:

Signature:

Print Name:

Title:

Date:
(Seal)
“Surety”
Signature:

Print Name:

Title:

WORKERS’ COMPENSATION

CERTIFICATE OF INSURANCE

CITYWIDE RESURFACING & RECONSTRUCTON PROJECT
PROJECT NO. 50106
WHEREAS, the City of PICO RIVERA (“City”) has required certain insurance to be provided by:

1. This certificate is issued to:

City of Pico Rivera
City Hall
6615 Passons Boulevard
Pico Rivera, California 90660
The insureds under such policy or policies are:

2. Workers’ Compensation Policy or Policies in a form approved by the Insurance Commissioner of California covering all operations of the named insureds as follows:

Policy Number Effective Date Expiration Date
By:

Its Authorized Representative
Notice of Exemption Appendix E
Revised 2011
To: Office of Planning and Research
P.O. Box 3044, Room 113
Sacramento, CA 95812-3044
County Clerk
County of: __________________
___________________________
___________________________
From: (Public Agency): ____________________________
_______________________________________________
_______________________________________________
(Address)
Project Title: _________________________
________________________________
Project Location - City: ______________________ Project Location - County: _____________________ Description of Nature, Purpose and Beneficiaries of Project:

Name of Public Agency Approving Project: _____________________________________________________ Name of Person or Agency Carrying Out Project: ________________________________________________ Exempt Status: (check one):

Ministerial (Sec. 21080(b)(1); 15268);

Declared Emergency (Sec. 21080(b)(3); 15269(a));

Lead Agency
Contact Person: ____________________________ Area Code/Telephone/Extension: _______________ If filed by applicant:

1. Attach certified document of exemption finding.

2. Has a Notice of Exemption been filed by the public agency approving the project? ҏ Yes
No
Signature: ____________________________ Date: ______________ Title: _______________________

City of Pico Rivera
6615 Passons Boulevard
Pico Rivera, CA 90660
Los Angeles
12400 Imperial Highway
Norwalk, CA 90650
CIP 50106 Citywide Resurfacing
___________________________________________________
and Reconstruction Project
Noe Negrete, Director of Public Works
Pico Rivera Los Angeles
City of Pico Rivera
Noe Negrete, Director of Public Works
Class 1 - Section 15301(c)
Noe Negrete 562-801-4421
Director of Public Works
Print Form
Removal and re-stripe existing roadway markings including legends and crosswalks, and installation of new signs and posts.

Project consists of repair and resurfacing of existing streets throughout the city, and upgrading non-compliant ADA curb ramps adjacent to the resurfacing.

Project Applicant: ________________________________________ Project Location - Specific:

Various locations throughout the City of Pico Rivera, as depicted on the CIP 50106 construction contract documents.

Enclosure 2
11b
Noe Negrete
Director
City of Pico Rivera

PUBLIC WORKS DEPARTMENT
6615 Passons Boulevard · Pico Rivera, California 90660
(562) 801-4421
Web: www.pico-rivera.org
City Council
Gustavo V. Camacho
Mayor
Dr. Monica Sanchez
Mayor Pro Tem
Johnny Garcia
Councilmember
Andrew C. Lara
Councilmember
Erik Lutz
Councilmember
July 22, 2026 Via Electronic Mail
Thomas S. Pack, President
Michael A. Mahler, Secretary
Sequel Contractors, Inc.
13546 Imperial Highway
Santa Fe Springs, CA 90670
[email protected]
SUBJECT: CITYWIDE RESURFACING AND RECONSTRUCTION PROJECT, CIP NO. 50106

NOTICE OF DETERMINATION OF NON-RESPONSIBILITY
Dear Mr. Pack and Mr. Mahler,
The City of Pico Rivera (City) has completed its review of the bids submitted for the above-referenced project. Following its evaluation, the City has determined that Sequel Contractors, Inc., the apparent low bidder, is not a responsible bidder for this project.

As part of the City's responsibility review, staff reviewed all bid documents submitted by Sequel Contractors, Inc., including the Contractor’s Statement (Pages B-9 to B-15 in the bid package). Staff findings include the failure to disclose a prior bidding debarment/settlement by the cities of La Mirada and La Cañada Flintridge.

In response to Question No. 14 of the Contractor's Statement, which asks, "For all arbitrations, lawsuits, settlements and the like (in or out of court) that the company or any principal having an interest in this Bid Proposal has been involved with in the past five years?", Sequel Contractors, Inc., answered "n/a." However, staff identified documentation memorializing a settlement between Sequel Contractors, Inc. and the City of La Cañada Flintridge dated June 18, 2024, under which Sequel Contractors, Inc. agreed not to bid on the City of La Cañada Flintridge public works projects for a period of five (5) years from the effective date of said agreement. In addition, staff found a Settlement Agreement with the City of La Mirada which documents that Sequel Contractors, Inc. was involved in litigation with a subcontractor concerning nonpayment and a filing of a Stop Notice by the subcontractor. That case is entitled R.J. Noble v Sequel Contractors, Inc., et al, Los Angeles Superior Case No. 18NWCV00054. This litigation was not disclosed and also exhibits a lack of financial capacity. Staff determined that this prior settlement and bidding prohibition should have been disclosed in response to Question No. 14.

In addition, response to Question No. 19 of the Contractor's Statement, which asks, "Has the company or any of its principals ever been debarred by any agencies?", Sequel Contractors, Inc. answered "No." However, staff identified documentation memorializing an agreement between Sequel Contractors, Inc. and the City of La Mirada under which Sequel Contractors, Inc. agreed not Enclosure 3
11c
Citywide Resurfacing and Reconstruction Project, CIP No. 50106 Notice of Determination of Non-Responsibility

Page 2 ends

to bid on City of La Mirada public works projects for a specified period. Staff determined that this prior bidding prohibition by the City of La Mirada should have been disclosed in response to Question No.

19. Furthermore, the Settlement Agreement between Sequel Contractors, Inc. and the City of La Cañada Flintridge includes a bidding prohibition for a period of five (5) years from the effective date of said agreement (recital No. 4). Staff determined that this prior bidding debarment by the City of La Cañada Flintridge should also have been disclosed in response to Question No. 19.

Pursuant to California Public Contract Code Section 1103, a "responsible bidder" is one who has demonstrated the attributes of trustworthiness, as well as the quality, fitness, capacity, and experience necessary to satisfactorily perform a public works contract. Based on Sequel Contractors, Inc.'s failure to disclose the prior bidding prohibition involving the cities of La Mirada and La Cañada Flintridge, the City has determined that Sequel Contractors, Inc., has not demonstrated the trustworthiness required of a responsible bidder. Accordingly, the City has determined that Sequel Contractors, Inc. is non-responsible for purposes of this procurement.

Following this determination, the City completed its review of the remaining bids and identified Onyx Paving Company, Inc. as the lowest responsive and responsible bidder. Staff verified the firm's references and confirmed satisfactory performance on projects of similar size and complexity for the Cities of Downey, Temple City, La Puente, and Pico Rivera, including the City's Citywide Resurfacing and Reconstruction Project (CIP No. 50066), which was successfully completed last year. The City also verified that Onyx Paving Company, Inc.'s bid proposal, bid bond, insurance documents, and contractor's license are complete, responsive, and in good standing.

Accordingly, it is the City's intent to award the construction contract as follows:

Contractor: Onyx Paving Company, Inc.

Total Bid Amount: $9,136,999.00
You are entitled to an informal hearing before the City Council to contest the determination that you are not a responsible bidder. The hearing will be held at the City Council meeting on July 28, 2026 at 6 pm, located at 6615 Passons Boulevard, Pico Rivera, California 90660. You may, at your discretion, present oral and documentary evidence to support your position that you are a responsible bidder. Any documentation must be provided to the City Clerk no later than 7 days from the date of this notice. The determination of the City Council will be final.

Questions regarding this notification may be directed to Noe Negrete, Director of Public Works at (562) 801-4421.

Sincerely,
Noe Negrete
Director of Public Works
Sequel Contractors, Inc.

BIDDER'S PROPOSAL - CONTRACTOR'S STATEMENT

CITY WIDE RESURFACING AND RECONSTRUCTION
CIP NO. 50106
Fill out all of the following information. Attach additional sheets if necessary. (1 ) Bidder's Name: ___ s_e_q_u_e_1 C_o_nt_ra_c_t_o_rs_,_ln_c_. ____________ _ (2) If the Bidder's name is a fictitious name, who or what is the full name of the registered owner? If the Bidder's name is not a fictitious name, write "N/A" in the response to this question. If you are doing business under a fictitious name, provide a copy of the filed valid Fictitious Business Name Statement.
(3)
(4)
(5)
(6)
(7)
(8)
(9)
(10)
(11 )
N/A
Business Address: 13546 Imperial Highway, Santa Fe Springs, Ca 90670 562-802-7227 Telephone: _________ Email: [email protected] Type of Firm -Individual, Partnership, LLC or Corporation: _c_o_r.,:.p_o_r_a_t_i_o_n ___ _ California Corporation organized under the laws of the State of: __________ _ California State Contractor's License Number and Class: __ 6_1_0_6_0_0_A _____ _ Original Date Issued: __ 1-'-/_3_1-'-/_9_1 ________ Expiration Date: 1/31/27 DIR Contractor Registration Number: ___ 1_0_0_0_0_0_3_52_1 _________ _ List the name and title of the person(s) who inspected the Project site for your firm:

Thomas S. Pack, President
Number of years experience the company has as a contractor in construction work: ~ List the names, titles, addresses and telephone numbers of all individuals, firm members, partners, joint venturers, and company or corporate officers having a principal interest in this Bid Proposal:

Thomas S. Pack, President 13546 Imperial Highway, Santa Fe Springs, Ca 90670 Abel Magallenes, Vice President 562-802-7227
Michael A. Mahler, Secretary
(12) List all current and prior D.B.A.'s, aliases, and fictitious business names for any principal having interest in this Bid Proposal:

N/A
B-9
Enclosure 4
11d
Sequel Contractors, Inc.
(13) List the dates of any voluntary or involuntary bankruptcy judgments against any principal having an interest in this Bid Proposal:

N/A
(14) For all arbitrations, lawsuits, settlements and the like (in or out of court) that the company or any principal having an interest in this Bid Proposal has been involved with in the past five years:
a. List the names, addresses and telephone numbers of contact persons for the parties:
n/a
b. Briefly summarize the parties' claims and defenses:
n/a
c. State the tribunal (e.g., Superior Court, American Arbitration Association, etc.), the matter number, and the outcome:
n/a
(15) Has the company or any principal having an interest in this Bid Proposal ever had a contract terminated by the owner or agency? If yes, explain.

No
B-10
;,equeJ 1,0mraClors, inC
(16) Has the company or any principal having an interest in this Bid Proposal ever failed to complete a project? If yes, explain.

No
(17) Has the company or any principal having an interest in this Bid Proposal ever been terminated for cause, even if it was converted to a "termination of convenience"? If yes, explain.

No
(18) For projects that the company or any principal having an interest in this Bid Proposal has been involved with in the last five years, did you have any ciaims or actions:
a.
b.

By you against the owner? Circle one:

By the owner against you? Circie one:

Yes WQ)
Yes ~
c. By any outside agency or individual for labor compliance? Circie one: Yes iJSIO)
d. By Subcontractors? Circle one: Yes <!§)
e. Are any of these claims or actions unresolved or outstanding? Circle one: Yes ~
If your answer is "yes" to any part or parts of this question, explain.

N/A
(19) Has the company or any of its principals ever been debarred by any agencies? Is yes, please explain.

No
B-11
Sequel Contractors, Inc.
(20) For ill! public agency projects in excess of 3,000.000 that you are currently working on or have worked on in the past two years, provide the following information:

Project 1 Name/Number _______________________ _
Project Description _________________________ _
Approximate Construction Dates From: -----To: ---------- Agency Name: ___________________________ _ Contact Person: ____________ Telephone:

Address: ________________________________ __
Original Contract Amount: $ ________ Final Contract Amount: $ ______ _ If final amount is different from original amount, please explain (change orders, extra work, etc.).

SEE ATTACHED
Did you or any Su~ractor, file any claims against the Agency? Circle one: Yes c:;!SV
Did the Agency file any claims against you? Circle one: Yes 67 If you answered yes to either of the above two questions, please explain and indicate outcome of claims.

Project 2 Name/Number ________________________ _
Project Description __________________________ _
Approximate Construction Date From: _______ To: ______ _ Agency Name: _______________________________ __
Contact Person: ______________ Telephone: _____________ _ Address:

Original Contract Amount: $ ________ Final Contract Amount: $ _______ _ If final amount is different from original amount, please explain (change orders, extra work, etc.). 8-12
Did you or any Subco~?r, file any claims against the Agency? Circle one: Yes cv
Sequel Contractors, Inc.

Did the Agency file any claims against you? Circle one: Yes ~ If you answered yes to either of the above two questions, please explain and indicate outcome of claims.

Project 3 Name/Number ________________________ _
Project Description _________________________ _
Approximate Construction Dates From: ____ . ___ To: ______ _ Agency Name: _____ S_E_E_A_T_T_A_C_H_E_D _____________ _ Contact Person: ____________ Telephone:

Address: ____________________________ _
Original Contract Amount: $ _______ _ Final Contract Amount: $. ______ _ If final amount is different from original amount, please explain (change orders, extra work, etc.).

Did you or any Subc~r, file any claims against the Agency? Circle one: Yes ~
Did the Agency file any claims against you? Circle one: Yes @ If you answered yes to either of the above two questions, please explain and indicate outcome of claims.

B-13
Sequel Contractors, Inc.

Project 4 Name/Number ________________________ _
Project Description _________________________ _
Approximate Construction Dates From: ______ To ______ _ Agency Name: ___________________________ _
Contact Person: ____________ Telephone: __________ _
Address:

Original Contract Amount: $ ________ Final Contract Amount: $ ______ _ If final amount is different from original amount, please explain (change orders, extra work, etc.).

SEE ATTACHED
Did you or any Subc~tor, file any claims against the Agency? Circle one: Yes ~
Did the Agency file any claims against you? Circle one: Yes ~ If you answered yes to either of the above two questions, please explain and indicate outcome of claims.

Project 5 Name/Number ________________________ _
Project Description
Approximate Construction Dates From: To: ------------ ------------ Agency Name: ___________________________ __
Contact Person: ____________ Telephone:

Address: _______________________________________________________ _ Original Contract Amount: $ ________ Final Contract Amount: $ ______ _ If final amount is different from original amount, please explain (change orders, extra work, etc.).

B-14
Did you or any Subco~, file any claims against the Agency? Circle one: Yes ~
Did the Agency file any claims against you? Circle one: Yes ~ If you answered yes to either of the above two questions, please explain and indicate outcome of claims.

Project 6 Name/Number ______________________ _
Project Description _________________________ _
Approximate Construction Dates From: To: ---------- ------- Agency Name:

Contact Person: ____________ Telephone:

Address: SEE ATTACHED
Original Contract Amount: $. ________ Final Contract Amount: $. ______ _ If final amount is different from original amount, please explain (change orders, extra work, etc.).

Fax (562) 802-7499

1. OWNER:

ADDRESS:

PHONE NO.:

CONTACT:

PROJECT:

PROJECT AMOUNT:

COMPLETION DATE:

2. OWNER:

ADDRESS:

PHONE NO.:

CONTACT:

PROJECT:

PROJECT AMOUNT:

COMPLETION DATE

3. OWNER:

ADDRESS:

PHONE NO.:

CONTACT:

PROJECT:

PROJECT AMOUNT:

COMPLETION DATE

4. OWNER:

ADDRESS:

PHONE NO.:

CONTACT:

PROJECT:

PROJECT AMOUNT:

COMPLETION DATE

5. OWNER:

ADDRESS:

PHONE NO.:

CONTACT:

PROJECT:

PROJECT AMOUNT:

COMPLETION DATE
ST. LlC #610600A
13546 IMPERIAL HWY
SANTA FE SPRINGS, CA 90670
(562) 802-7227 Office

STATEMENT OF EXPERIENCE

CITY OF HA WTHRONE
4455 W. 126'" STREET
HAWTHORNE, CA 90250
(310) 349-2945

JOSE VELAZQUEZ
120TH STREET IMPROVEMENTS
$2,965,744.00
SEPTEMBER 2025

CITY OF SOUTH GATE
8650 CALIFORNIA AVE
SOUTH GATE, CA 90280
(323) 563-9500

JOSE LOERA

TWEEDY AVENUE IMPROVEMENTS
$8,906,618
JANUARY 2026

CITY OF SOUTH GATE
8650 CALIFORNIA AVENUE
SOUTH GATE, CA 90280
(323) 562-9574

KEN TANG

RESIDENTIAL STREETS
$4,050,583
DECEMBER 2025

CITY OF BELL
6330 PINE AVENUE
BELL, CA 90201
(323) 588-6211

REY ALFONSO
VARlOUSSTREETIMPROVEMENTS
$1,033,001.15
JANUARY 2026

CITY OF INDUSTRY
15625 MAYOR DAVE WAY
CITY OF INDUSTRY, CA 91744
(562) 896-2260

CHRISLUM

GALE AVENUE RESURFACING
$2,159,926.00
NOVEMBER, 2024
SEQUEL CONTRACTORS, INC.

Fax (562) 802-7499

6. OWNER:

ADDRESS:

PHONE NO.:

CONTACT:

PROJECT:

PROJECT AMOUNT:

COMPLETION DATE

7. OWNER:

ADDRESS:

PHONE NO.:

CONTACT:

PROJECT:

PROJECT AMOUNT:

COMPLETION DATE

8. OWNER:

ADDRESS:

PHONE NO.:

CONTACT:

PROJECT:

PROJECT AMOUNT:

COMPLETION DATE

9. OWNER:

ADDRESS:

PHONE NO.:

CONTACT:

PROJECT:

PROJECT AMOUNT:

COMPLETION DATE

10. OWNER:

ADDRESS:

PHONE NO.:

CONTACT:

PROJECT:

PROJECT AMOUNT:

COMPLETION DATE:

ST. L1C #610600A
13546 IMPERIAL HWY
SANTA FE SPRINGS, CA 90670
(562) 802-7227 Office

STATEMENT OF EXPERIENCE

CITY OF SOUTH GATE
8650 CALIFORNIA AVE
SOUTH GATE, CA90280
(323) 562-9574

KEN TANG

LONG BEACH BLVD IMPROVEMENTS
$7,527,161.00
JANUARY 2026

CITY OF PLACENTIA
40 I E CHAPMAN AVE
PLACENTIA, CA 92870
(714)993-8117

GABRIEL GUERRERO

CHAPMAN AVE
$2,847,793.74
AUGUST 2025

CITY OF CUDAHY
5220 SANTA ANA AVE
CUDAHY, CA 90201
(909) 595-8599

DWAYNETUT

ATLANTIC A VENUE COMPLETE STREETS
$4,725,000.00
JANUARY 2026

CITY OF DOWNEY
11111 BROOKSIDRE AVE
DOWNEY, CA 90241
(562) 904-7110

MATTHEW VILLEGAS
WOODRUFF A VENUE PHASE 2
$4,953,612.00
NOVEMEBR 2025

CITY OF PARAMOUNT
16400 COLORADO AVENUE
PARAMOUNT, CA 90723
(310) 502-9931

JASON BROWN

RESIDENTIAL STREET REHABILITATION
$1,374,306.90
NOVEMBER 2025

SETTLEMENT AGREEMENT AND RELEASE OF ALL CLAIMS
This " Settlement Agreement and Release of All Claims" ("Agreement") is made and entered into by and between Sequel Contractors, Inc. ("Contractor"), and the City of La Canada Flintridge (the " City"), a municipal corporation. Hereinafter, " Party" shall. refer individually to each of the foregoing named parties, and " Parties" shall refer collectively to all of the foregoing named parties.

RECITALS
The Parties enter into this Agreement with reference to the following facts:

A. On May 4, 2021, the Parties entered into an Agreement for Public Works Services for the Foothill Boulevard Link & Pedestrian Greenbelt Project Contract 19/ 20- 10), Federal Project No. CML- 5417( 021) ("Project Agreement").

B. Pursuant to the terms of the Project Agreement, Sequel was required to construct an approximately half -mile Class I bicycle and pedestrian path, and two miles of a Class II bike lane with bicycle amenities, raised medians, and a bus stop; cold mill -existing pavement and re -pave with asphalt rubber hot mix; remove and install traffic striping and raised pavement markings; replace the curb and gutter and make other drain improvements; make various improvements to traffic signals to include new equipment, including bicycle signal detection, and bicycle/ pedstrian push buttons; add street lighting, including illuminated street name signs; beautify the streetscape; and narrow the travel lanes to enhance bike and pedestrian mobility and safety along Foothill Boulevard (" Project").

C. The Project Agreement specified a total not to exceed Contract Sum of Two Million Five Hundred Seventy Eight Thousand Six hundred and Seventy Five Dollars ($ 2, 578, 675. 00), and construction duration of 100 working days. For various reasons the Project was delayed and expenses increased, and subsequently, a dispute arose among the Parties regarding the ultimate length of construction and cost of the Project, including claims by the City for liquidated damages and claims by Contractor for compensatory damages.

D. The Parties, in good faith and in an effort to avoid the uncertainty and expense of litigation, now deem it in their best interests and advantage to settle any and all disputes between them, and to provide for mutual releases in accordance with the terms, covenants and conditions of this Agreement as hereinafter set forth.
0f 172. 0003, 988208. 1 Page 1 of 6
Enclosure 5
11e

AGREEMENT
For full and valuable consideration, the receipt and adequacy of which are hereby acknowledged, and based upon the foregoing recitals and terms, conditions, covenants and agreements contained herein, the Parties hereto agree as follows:

1. Recitals are Part of Agreement. The preceding Recitals are part of this Agreement.

2. Effective Date. This Agreement shall become effective as of the first day it has been executed by or on behalf of all the Parties hereto (" Effective Date").

3. Settlement Payment. The final Contract amount is estimated to be 2, 877, 916. 03 which includes all change orders. Contingent upon Contractor providing proof to the City that all Stop Notices on the Project have been cleared, City shall pay to Contractor the sum total of Two Hundred Five Thousand, Two Hundred Twenty -Three and 83/ 100 Dollars ($ 205,23. 8) (" City Payment"). Partial City Payment in the amount of $ 121, 328. 03consisting of Progress Payments Nos. 14 ($ 66, 028. 26), 15 ($ 49, 500. 79) and 16 ($ 5, 798. 98) shall be issued as soon as practicable in response to receipt by the City of confirmation that Contractor has cleared all Stop Notices on the Project. The remaining balance of $ 83,95.0 shall be paid to Contractor within 30 days after approval of the Notice of Completion, provided that all stop notices have been cleared.

The total City Payment shall constitute full and final payment of any and all outstanding City obligations and in full consideration of any and all claims Contractor has or may have against the City relating to the Project Agreement.

4. Bidding. For a period of five ( 5) years from the Effective Date of this Agreement, Contractor agrees and covenants that it will not, for any purpose, submit a bid or proposal for or in response to any City project.

5. Mutual Release. For valuable consideration, the receipt and adequacy of which are hereby acknowledged, Contractor and the City do hereby release and forever discharge each other and their respective " Releasees" hereunder, consisting of their respective board members, officers, agents, owners, trustors, settlors, trustees, members, employees, attomeys, co -owners, spouses, and/ or any other person( s) acting on their behalf of and from any and all manner of action or actions, cause or causes of action, in law or in equity, suits, debts, liens, contracts, agreements, promises, liability, claims, demands, damages, losses, cost or expenses, of any nature whatsoever, known or unknown, fixed or contingent ( hereinafter called " Claims"), which the Parties now have or may hereafter may have against each other and/ or the Releasees, or any of them, by reason of any matter, cause, or thing whatsoever from the beginning of time to the date hereof regarding the Project Agreement. The Parties acknowledge and agree that the payment of said City Payment shall and does hereby fully and totally compensate Contractor for any and all manner of action or actions, cause or causes of action, in law or in equity, suits, debts, liens, contracts, agreements, promises, liability, claims, demands, damages, losses, costs, or expenses, fixed or contingent, whether presently 01172.003/ 988208 1 Page 2 of 6
known or unknown, which Contractor may now have or may hereafter have against the City and its Releasees arising from, or in any way related to, the Project Agreement.

6. Release of Unknown Claims. The Parties intend and agree that the Release set forth above in Paragraph 5 of this Agreement is to be interpreted as broadly as possible, and is a release of ALL claims, demands, causes of action, obligations, damages, and liabilities of any nature whatsoever that are described in the Release and is intended to encompass all known and unknown, foreseen and unforeseen claims which the Parties may have as a result of the Project Agreement, except for any claims which may arise from the terms ofthis Agreement.

7. Waiver of Civil Code Section 1542. The Parties expressly agree to waive and relinquish all rights and benefits they may respectively have against each other and the Released Parties under Paragraph 5 of this Agreement based on Section 1542 of the Civil Code ofthe State of California. That section reads as follows:
1542. [ General release; extent] A general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time of executing the release, which if known by him or her must have materially affected his or her settlement with the debtor."
Contractor' s
Initils
City' sinitials:

8. No Admission. This Agreement constitutes a compromise of disputed claims and nothing contained herein is to be construed as an admission of liability on the part of any Party or the absence of liability of any Party.

9. No Pending Actions. Each Party represents that it has not filed any complaints or charges against the other Party with any local, state, or federal agency or court with regard to the Project Agreement; and that if any such agency or court assumes jurisdiction ofany complaint or charge arising out of or relating to, the Project Agreement, the Party will request such agency or court to withdraw and dismiss the matter forthwith.

10. No Prior Assignment or Transfer. The Parties acknowledge that they have not heretofore assigned or transferred, or purported to assign or transfer to any person any released matter, or any part or portion thereof. The Parties also agree that if, contrary to the foregoing representation, there has been such assignment or transfer, the Party who has made this misrepresentation shall indemnify, defend, and hold harmless the other from and against any rights, actions, claims, causes of action, and demands of whatever nature or description, in law or equity, whether now known or unknown, suspected or unsuspected, based on, in connection with, or arising out of any such undisclosed assignment or transfer.
01172.003988208. 1 Page 3 of 6

11. Attorneys' Fees and Costs. Each Party shall bear its own attorneys' fees and costs incurred in connection with the settlement, negotiation, and drafting of this Agreement. However, should any legal action be required to enforce the terms of this Agreement, the prevailing Party in such action shall be entitled to reasonable attorneys' fees and costs pertaining to such action, in addition to any other relief to which that Party may be entitled.

12. Successors and Assigns. This Agreement and all conditions, terms,. covenants and releases herein shall be binding upon and shall inure to the benefit of the Parties, and their legal successors, heirs, and assigns.

13. Complete Defense. The Parties agree that they will not sue each other pertaining to anything asserted in, arising out of, related to, or based on the Project Agreement, or the facts set forth in the Recitals, or anything related thereto, except as to any claims as may arise in enforcing this Agreement. The Parties agree that this Agreement may be pleaded as a complete defense to any subsequent action brought by any of the Parties regarding or relating to the subject matter of the Project Agreement, or anything related thereto.

14. Investigation of Facts and Relevant Matters. Each of the Parties acknowledges that it has made such investigation of the facts pertaining to this Agreement and all matters pertaining hereto as it has deemed reasonable and/ or necessary. The Parties warrant that if the facts upon which this Agreement is based are found to be different from the facts now believed to be true, this Agreement will remain binding and effective.

15. No Reliance on Outside Parties. Each of the Parties acknowledges that it has not relied upon any statement or representation by any other Party or any representative of any other Party, in making or executing this Agreement, except as expressly stated herein.

16. Advice of Counsel. Each of the Parties acknowledges that it has received, or has had the opportunity to receive, independent legal advice from an attorney with respect to the advisability of making this Agreement and with respect to the advisability of executing this Agreement. The Parties acknowledge that they have read this Agreement and each is fully aware of, and understands its terms, and the legal consequences thereof, and is voluntarily and freely executing this Agreement.

17. Interpretation. Should it be necessary for a court to interpret this Agreement, the Parties agree that it has been prepared by a joint effort of all Parties.

Accordingly, neither Party shall be deemed the drafter and the rule of construction providing for the interpretation of an agreement against the drafter shall not apply.

18. Governing Law. This Agreement shall be construed and enforced pursuant to the laws of the State of California.

O1172. 0003/ 988268. 1

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19. Severabiiity. The provisions of this Agreement are severable, and if one or more provisions or subcomponents should be determined to be unconstitutional, illegal, or judicially unenforceable, in whole or in part, then, unless such unenforceability would make it impossible to effectuate the original intent of the Parties, the remaining provisions or subcomponents hereof shall remain binding and enforceable.

20. Modification. This Agreement cannot be modified, amended, or changed except by an instrument in writing signed by each Party.

21. Further Acts. Each of the Parties agrees to take such further action and to execute and deliver such additional documents as any other Party may reasonably request in order to effectuate orperfect this Agreement.

22. Expression of Entire Agreement. This Agreement constitutes a single, integrated written contract, and as such, expresses the entire Agreement of the Parties with respect to the matters contained herein and supersedes all prior negotiations, discussions, correspondence and other communications regarding the terms and conditions hereof.

23. Full and Complete Settlement. This Agreement constitutes a full and complete settlement of all claims arising out of, related to, or based on the Project Agreement, or anything related thereto, with no reservation of any rights or claims either stated or implied.

24. No Amendment of Project Agreement. Except as otherwise agreed to herein, nothing in this Agreement is intended nor shall be construed to amend any part of the Project Agreement, which shall survive the execution of this Agreement and the releases set forth herein.

25. Counterparts. This Agreement may be executed in several counterparts, and all so executed shall constitute one agreement binding on all parties hereto, notwithstanding that all parties are not signatories to the original or the same counterpart.

26. Execution and Authority to Bind. This Agreement is executed on behalf of the respective Parties below. Each of the Parties represents, warrants and agrees that any person executing this Agreement on its behalf has the full right and authority to enter this Agreement on behalf of that Party and has the full right and authority to execute this Agreement and to fully bind that Party to the terms and obligations of this Agreement and that the execution and consummation of this Agreement will not result in any breach of, contravene any provision of, violate or constitute a default under any article of incorporation, charter, bylaw, mortgage, indenture, contract, agreement, instrument, judgment, statute, rule, or regulation to which that Party is subject, and there is no claim or assertion or potential claim or assertion to the contrary. Each of the persons signing this Agreement on behalf of one or more of the Parties hereto makes the same warranties reference above.

SIGNATURES ON FOLLOWING PAGE]
0I 172. 0003/ 988208. 1 Page 5 of 6
DATED: June 6 , 2024
APPROVED AS TO FORM:

BOOTH, MITCHEL STRANGE, LLP
Craig E, uenther
Attorney for Sequel Contractors, Inc.

CITY OF LA CANADA FLINTRFDGE:

Daniel, Jordan, City Manager
DATED: June , 2024
APPROVED AS TO FORM:

ALESHIRE & WYNDER, LLP
Adrian R. Guerra, City Attorney
Ol172. 0003/ 9882O8. I

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EL NT' • CT RS, INC:

DATED: June & , 2024
APPROVED AS TO FORM:

BOOTH, MITCHEL STRANGE, LLP
Craig E. ruenther
Attorney for Sequel Contractors, Inc.

CITY OF LA CANADA FLINTRIDGE:

Daniel, Jordan, City Manager
DATED: June I , 2024
APPROVED AS TO FORM:

ALESHIRE & WYNDER, LLP
Adrian R. Guerra, City Attorney
O117iOOO3/ 988208. 1

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Enclosure 6
11f

To: Mayor and City Council
From: City Manager
Meeting Date: July 28, 2026
Subject: SMITH PARK AQUATIC CENTER RENOVATION PROJECT, CIP NO. 50043 – AUDIO VISUAL AND INFORMATION TECHNOLOGY

INTEGRATION SERVICES
Recommendation:

1. Award a Professional Services Agreement to INA Display, to provide audio visual and information technology (AV/IT) integration services for the Smith Park Aquatic Center Renovation Project, CIP No. 50043, for an amount not-to-exceed $234,228 and authorize the City Manager to execute the agreement in a form approved by the City Attorney; and

2. Authorize the City Manager, or his designee, to process change orders, asneeded, not exceeding a contingency amount of $25,000 (approximately 10% of the total contract amount).

Strategic Priority:
3 - Infrastructure - Plan, fund, build, and maintain reliable and cost-effective infrastructure that contributes to enhancing quality of life
Strategy:

3.3 Complete construction of necessary infrastructure projects to implement master plans in a timely manner.

Fiscal Impact:

The fiscal year (FY) 2026-27 Adopted Budget includes funding in the amount of $41,039,329 for the project. The sources of funding for the project are shown in the Table on page 3. No additional funding appropriations are requested at this time.

Discussion:

On February 19, 2026, the City Council awarded a construction contract to Swinerton Builders for the Project. As part of the facility renovation, AV/IT integration services will be required to provide the necessary displays, sound systems, control interfaces, 12 Back to Agenda Outline
CITY COUNCIL AGENDA REPORT – MEETING OF JULY 28, 2026
SMITH PARK AQUATIC CENTER RENOVATION PROJECT, CIP NO. 50043 - AUDIO

VISUAL AND INFORMATION TECHNOLOGY INTEGRATION SERVICES

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communication technology, and supporting infrastructure for the pool deck, events room, multipurpose rooms, boardroom, and lobby areas. These services must be coordinated and installed during general construction to ensure appropriate wiring, equipment placement, and system compatibility with the building’s structural, electrical, and mechanical components, and to avoid costly rework once the facility is completed.

To incorporate AV/IT components in the Project, it is necessary to procure professional services from an AV/IT consultant. On April 23, 2026, the City of Pico Rivera (City) issued a Request for Proposals through its Electronic Procurement website, Planet Bids. Four (4) proposals were received on June 11, 2026. Services requested consist of procurement and installation of equipment, construction coordination, installation of low voltage cabling, design plan development and construction support services.

A technical panel of Public Works staff evaluated the proposals using qualifications-based criteria, such as team expertise, relevant experience, and understanding of the project’s requirements. A summary of the rankings is provided below. INA Display received the highest ranking from the panel.

No. Company Name
1 INA Display
2 Matrix Audio Visual Designs
3 Forte
4 Cali Automation Corp
In accordance with the City’s Procurement Policy, professional services must be awarded to the consultant that received the highest ranking in a qualification-based competitive selection process, assuming a reasonable fee is negotiated. The City negotiated a fee of $234,228 with INA Display, deemed reasonable for the scope of services. INA Display has performed similar services for the City of Watsonville.

The total project budget is summarized as follows:

Expenditure Plan Amount
Design $3,319,800
Construction $32,357,000
Construction Management and Inspection $1,538,250
Pre-Engineered Building $594,000
Furniture $1,000,000
AV/IT $234,228
Project Administration $350,000
Project Management & Internal Support Costs $1,621,051
Contingency $25,000
Total Estimated Project Cost $41,039,329
CITY COUNCIL AGENDA REPORT – MEETING OF JULY 28, 2026
SMITH PARK AQUATIC CENTER RENOVATION PROJECT, CIP NO. 50043 - AUDIO

VISUAL AND INFORMATION TECHNOLOGY INTEGRATION SERVICES

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Budget Funding Amount
LWCF Federal Funds (Fund 698) $6,000,000
State of California Natural Resources Agency
Department of Parks and Recreation Grant Funds
(Fund 699)
$8,500,000
State of California Natural Resources Agency
Department of Parks and Recreation Grant Funds
(Fund 699)
$1,000,000
State of California Natural Resources Agency
Department of Parks and Recreation Grant Funds
(Fund 699)
$78,569
Los Angeles County Local Grant (Fund 697) $10,000,000
Capital Improvement Fund (Fund 400) $15,260,760
Measure W (Fund 209) $200,000
Total Estimated Project Cost: $41,039,329
Construction of the Project is anticipated to be completed by Spring 2028.

Conclusion:

Staff recommend an award of a professional services agreement to INA Display to provide AV/IT integration services for the Smith Park Aquatic Center Renovation Project, CIP No. 50043, for an amount not-to-exceed $234,228 and authorization to the City Manager or designee to process change orders, as needed, in an amount not-to-exceed $25,000 in contingency (approximately 10% of the total contract amount).

Steve Carmona
SC:NN:KG:np
Enclosure: 1) Professional Services Agreement
AGREEMENT NO. _______

PROFESSIONAL SERVICES AGREEMENT

BETWEEN THE CITY OF PICO RIVERA AND
INA LED US, INC.

1. IDENTIFICATION
THIS PROFESSIONAL SERVICES AGREEMENT (“Agreement”) is entered into by and between the City of Pico Rivera, a California municipal corporation (“City”) and INA LED US, INC. dba INA DISPLAY, (“Consultant”). City and Consultant are sometimes hereinafter individually referred to as a “Party” and collectively referred to as “Parties.”

2. RECITALS

2.1 City has determined that it requires professional services from a consultant to provide audio visual/I.T. integration and installation services for the Smith Park Aquatic Center Renovation Project, CIP No. 50043.

2.2 Consultant represents that it is fully qualified to perform such professional services by virtue of its experience and the training, education and expertise of its principals and employees. Consultant further represents that it is willing to accept responsibility for performing such services in accordance with the terms and conditions set forth in this Agreement.

NOW, THEREFORE, for and in consideration of the performance by the Parties of the mutual covenants and conditions herein contained, the Parties hereto agree as follows:

3. DEFINITIONS

3.1 “Scope of Services”: Such professional services as are set forth in the Consultant’s June 11, 2026 proposal to City attached hereto as Exhibit “A” and incorporated herein by this reference.

3.2 “Approved Fee Schedule”: Such compensation rates as are set forth in the Consultant’s July 21, 2026 proposal to City attached hereto as Exhibit “B.”

3.3 “Commencement Date” : July 28, 2026

3.4 “Expiration Date” : June 30, 2029

4. TERM
The term of this Agreement shall commence at 12:00 a.m. on the Commencement Date and shall expire at 11:59 p.m. on the Expiration Date unless extended by written agreement of the Parties or terminated in accordance with Section 22 below.

Enclosure 1
12a
Back to Agenda Outline
Professional Services Agreement

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5. CONSULTANT’S SERVICES

5.1 Consultant shall perform the services identified in the Scope of Services. City shall have the right to request, in writing, changes in the Scope of Services. Any such changes mutually agreed upon by the Parties, and any corresponding increase or decrease in compensation, shall be incorporated by written amendment to this Agreement.

In no event shall the total compensation and costs payable to Consultant under this Agreement exceed the sum of $234,227.11, (Two Hundred Thirty Four Thousand Two Hundred Twenty-Seven Dollars and Eleven Cents) unless specifically approved in advance, in writing, by City.

5.2 Consultant shall perform all work to the highest professional standards of Consultant’s profession and in a manner reasonably satisfactory to City.

6. COMPENSATION

6.1 City agrees to compensate Consultant for the services provided under this Agreement, and Consultant agrees to accept in full satisfaction for such services, payment in accordance with the Approved Fee Schedule.

6.2 Consultant shall submit to City an invoice, on a monthly basis or less frequently, for the services performed pursuant to this Agreement. Each invoice shall itemize the services rendered during the billing period and the amount due. Within ten (10) business days of receipt of each invoice, City shall notify Consultant in writing of any disputed amounts included on the invoice. Within thirty (30) calendar days of receipt of each invoice, City shall pay all undisputed amounts included on the invoice. City shall not withhold applicable taxes or other authorized deductions from payments made to Consultant.

6.3 Payments for any services requested in writing by City and not included in the Scope of Services shall be made to Consultant by City on a time-and-materials basis using Consultant’s standard fee schedule. Fees for such additional services shall be paid within sixty (60) days of the date Consultant issues an invoice to City for such services.

7. BUSINESS LICENSE
Consultant shall obtain a City of Pico Rivera business license prior to commencing performance under this Agreement.

8. COMPLIANCE WITH LAWS
Consultant shall keep informed of State, Federal and Local laws, ordinances, codes and regulations that in any manner affect those employed by it or in any way affect the performance of its services pursuant to this Agreement. Consultant shall at all times comply with such laws, ordinances, codes and regulations. Without limiting the generality Professional Services Agreement

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of the foregoing, if Consultant is an out-of-state corporation or LLC, it must be qualified and registered to do business in the State of California pursuant to sections 2105 and 17708.02 of the California Corporations Code. The City, its officers and employees shall not be liable at law or in equity occasioned by failure of Consultant to comply with this Section.

9. CONFLICT OF INTEREST
Consultant covenants that it presently has no interest and shall not acquire any interest, direct or indirect, which may be affected by the services to be performed by Consultant under this Agreement, or which would conflict in any manner with the performance of its services hereunder. During the term of this Agreement, Consultant shall not perform any work for another person or entity for whom Consultant was not working at the Commencement Date of this Agreement if both: (i) such work would require Consultant to abstain from a decision under this Agreement pursuant to a conflict of interest statute; and (ii) City has not consented in writing prior to Consultant’s performance of such work.

10. PERSONNEL
Consultant represents that it has, or will secure at its own expense, all personnel required to perform the services identified in the Scope of Services. All such services shall be performed by Consultant or under its supervision, and all personnel engaged in the work shall be qualified to perform such services. Consultant reserves the right to determine the assignment of its own employees to the performance of Consultant’s services under this Agreement, but City reserves the right, for good cause, to require Consultant to exclude any employee from performing services on City’s premises. Josh Kim, CEO shall be Consultant’s project administrator and shall have direct responsibility for management of Consultant’s performance under this Agreement. No change shall be made to Consultant’s project administrator without City’s prior written consent.

11. OWNERSHIP OF WRITTEN PRODUCTS
All reports, documents or other written material (“written products”) developed by Consultant in the performance of this Agreement shall be and remain the property of City without restriction or limitation upon its use or dissemination by City. Consultant may take and retain copies of such written products as desired, but no such written products shall be the subject of a copyright application by Consultant. If any state, federal, or local law requires mandatory copyright protection for Consultant’s work product, City shall comply with such laws to the extent feasible.

12. INDEPENDENT CONSULTANT

12.1 Consultant is, and shall at all times remain as to City, a wholly independent consultant. Consultant shall have no power to incur any debt, obligation, or liability on Professional Services Agreement

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behalf of City or otherwise to act on behalf of City as an agent. Neither City nor any of its officers, employees or agents shall have control over the conduct of Consultant or any of Consultant’s employees, except as set forth in this Agreement. Consultant shall not at any time represent that it is, or that any of its agents or employees are, in any manner employees of City. 12.2 The Parties further acknowledge and agree that nothing in this Agreement shall create or be construed to create a partnership, joint venture, employment relationship, joint-employer relationship, or any other relationship between Consultant or Consultant’s employees except as set forth in this Agreement.

12.2 City shall have no direct or indirect control over Consultant’s employees or sub-consultants with respect to wages, hours, and working conditions. In addition, City shall not deduct from the Compensation paid to Consultant any sums required for Social Security, withholding taxes, FICA, state disability insurance or any other federal, state or local tax or charge which may or may not be in effect or hereinafter enacted or required as a charge or withholding on the compensation paid to Consultant, Consultant’s employees or subconsultants. City shall have no responsibility to provide Consultant, its employees or subconsultants with workers’ compensation insurance or any other insurance.

13. CONFIDENTIALITY
All data, documents, discussion, or other information developed or received by Consultant or provided for performance of this Agreement are deemed confidential and shall not be disclosed by Consultant without prior written consent by City. City shall grant such consent if disclosure is legally required. Upon request, all City data and any copies thereof shall be returned to City upon the termination or expiration of this Agreement.

14. NON-LIABILITY OF CITY OFFICIALS AND EMPLOYEES
No official or employee of the City shall be personally liable to Consultant in the event of any default or breach by City, or for any amount which may become due to Consultant.

15. INDEMNIFICATION

15.1 The Parties agree that City, its officers, agents, elected and appointed officials, employees, affiliated public agencies and volunteers should, to the extent permitted by law, be fully protected from any loss, injury, damage, claim, lawsuit, cost, expense, attorneys’ fees, litigation costs, or any other cost arising out of or in any way related to the performance of this Agreement. Accordingly, the provisions of this indemnity provision are intended by the Parties to be interpreted and construed to provide the fullest protection possible under the law to City. Consultant acknowledges that City would not enter into this Agreement in the absence of Consultant’s commitment to indemnify and protect City as set forth herein. Notwithstanding the foregoing, to the extent Consultant's services are subject to Civil Code Section 2782.8, the above indemnity shall be limited, to the extent Professional Services Agreement

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required by Civil Code Section 2782.8, to claims that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Consultant.

15.2 To the full extent permitted by law, Consultant shall indemnify, hold harmless and defend City, its officers, agents, elected and appointed officials, employees, affiliated public agencies and volunteers from and against any and all claims, demands, lawsuits, causes of action, losses, costs or expenses for any damage due to death or injury to any person and injury to any property resulting from or arising out of any alleged intentional, reckless, negligent, or otherwise wrongful acts, errors or omissions of Consultant or any of its officers, employees, servants, agents, or subconsultants in the performance of this Agreement. Such costs and expenses shall include reasonable attorneys’ fees incurred by counsel of City’s choice and expert witness fees and consultant fees. Notwithstanding the foregoing, to the extent Consultant's Services are subject to Civil Code Section 2782.8, the above indemnity shall be limited, to the extent required by Civil Code Section 2782.8, to claims that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Consultant.

15.3 City shall have the right to offset against the amount of any compensation due Consultant under this Agreement any amount due to City from Consultant as a result of Consultant’s failure to pay City promptly any indemnification arising under this Section 15 or related to Consultant’s failure to either: (i) pay taxes on amounts received pursuant to this Agreement or (ii) comply with applicable workers’ compensation laws.

15.4 The obligations of Consultant under this Section 15 will not be limited by the provisions of any workers’ compensation act or similar act. Consultant expressly waives its statutory immunity under such statutes or laws as to City, its officers, agents, employees and volunteers.

15.5 Consultant agrees to obtain executed indemnity agreements with provisions identical to those set forth here in this Section 15 from each and every subconsultant or any other person or entity involved by, for, with or on behalf of Consultant in the performance of this Agreement. In the event Consultant fails to obtain such indemnity obligations from others as required herein, Consultant agrees to be fully responsible and indemnify, hold harmless and defend City, its officers, agents, elected and appointed officials, employees, affiliated public agencies and volunteers from and against any and all claims, demands, lawsuits, causes of action, losses, costs or expenses for any damage due to death or injury to any person and injury to any property resulting from or arising out of any alleged intentional, reckless, negligent, or otherwise wrongful acts, errors or omissions of Consultant’s subconsultants or any other person or entity involved by, for, with or on behalf of Consultant in the performance of this Agreement. Such costs and expenses shall include reasonable attorneys’ fees incurred by counsel of City’s choice and expert witness fees and consultant fees.

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15.6 City does not, and shall not, waive any rights that it may possess against Consultant because of the acceptance by City, or the deposit with City, of any insurance policy or certificate required pursuant to this Agreement. This hold harmless and indemnification provision shall apply regardless of whether or not any insurance policies are determined to be applicable to the claim, demand, damage, liability, loss, cost or expense.

15.7 PERS ELIGIBILITY INDEMNITY. In the event that Consultant or any employee, agent, or subconsultant of Consultant providing services under this Agreement claims or is determined by a court of competent jurisdiction or the California Public Employees Retirement System (PERS) to be eligible for enrollment in PERS as an employee of the City, Consultant shall indemnify, defend, and hold harmless City for the payment of any employee and/or employer contributions for PERS benefits on behalf of Consultant or its employees, agents, or subconsultants, as well as for the payment of any penalties and interest on such contributions, which would otherwise be the responsibility of City.

Notwithstanding any other agency, state or federal policy, rule, regulation, law or ordinance to the contrary, Consultant and any of its employees, agents, and subconsultants providing service under this Agreement shall not qualify for or become entitled to, and hereby agree to waive any claims to, any compensation, benefit, or any incident of employment by City, including but not limited to eligibility to enroll in PERS as an employee of City and entitlement to any contribution to be paid by City for employer contribution and/or employee contributions for PERS benefits.

16. INSURANCE

16.1 During the term of this Agreement, Consultant shall carry, maintain, and keep in full force and effect insurance against claims for death or injuries to persons or damages to property that may arise from or in connection with Consultant’s performance of this Agreement. Such insurance shall be of the types and in the amounts as set forth below:

16.1.1 Comprehensive general liability, and Umbrella or Excess Liability Insurance covering all operations by or on behalf of Consultant providing insurance for bodily injury liability and property damage liability for the following and including coverage for:

16.1.1.1 Premises, operations, and mobile equipment

16.1.1.2 Products and completed operations

16.1.1.3 Broad form property damage (including completed operations)

16.1.1.4 Explosion, collapse, and underground hazards
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16.1.1.5 Personal Injury

16.1.1.6 Contractual liability
in the amount of One Million Dollars ($1,000,000) per occurrence combined single limit; Two Million Dollars ($2,000,000) aggregate for products/completed operation; Two Million Dollars ($2,000,000) general aggregate (General aggregate must apply separately to Consultant’s work under this Agreement.); and Five Million Dollars ($5,000,000) umbrella or excess liability.

16.1.2 Automobile Liability Insurance for owned, hired and non-owned vehicles utilized by Consultant, its employees or subconsultants, in the amount of One Million Dollars ($1,000,000) per accident for bodily injury and property damage.

16.1.3 Worker’s Compensation Insurance as required by the laws of the State of California, with Statutory Limits, and Employer's Liability Insurance with limit of no less than One Million Dollars ($1,000,000) per accident for bodily injury or disease.

16.1.4 Professional Liability Insurance against errors and omissions in the performance of the work under this Agreement with coverage limits of not less than One Million Dollars ($1,000,000) per occurrence of claim/ Two Million Dollars ($2,000,000) in the aggregate.

16.2 Consultant shall require each of its subconsultants, if any, to maintain insurance coverage that meets all of the requirements of this Agreement.

16.3 The policy or policies required by this Agreement shall be issued by an insurer admitted in the State of California and with a rating of at least A:VII in the latest edition of Best’s Insurance Guide.

16.4 Consultant agrees that if it does not keep the aforesaid insurance in full force and effect City may either: (i) immediately terminate this Agreement; or (ii) take out the necessary insurance and pay, at Consultant’s expense, the premium thereon.

16.5 At all times during the term of this Agreement, Consultant shall maintain on file with City’s Risk Manager a certificate or certificates of insurance showing that the aforesaid policies are in effect in the required amounts and, for the general liability and automobile liability policies, naming the City as an additional insured. Consultant shall, prior to commencement of work under this Agreement, file with City’s Risk Manager such certificate(s).

16.6 Consultant shall provide proof that policies of insurance required herein expiring during the term of this Agreement have been renewed or replaced with other policies providing at least the same coverage. Consultant shall provide such proof to City Professional Services Agreement

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at least two weeks prior to the expiration of the coverages.

16.7 The general liability and automobile policies of insurance required by this Agreement shall contain an endorsement naming City, its officers, employees, agents and volunteers as additional insureds. All of the policies required under this Agreement shall contain an endorsement providing that the policies cannot be canceled or reduced except on thirty days’ prior written notice to City. Consultant agrees to require its insurer to modify the certificates of insurance to delete any exculpatory wording stating that failure of the insurer to mail written notice of cancellation imposes no obligation, and to delete the word “endeavor” with regard to any notice provisions.

16.8 The general liability and automobile policies of insurance provided by Consultant shall be primary to any coverage available to City. Any insurance or selfinsurance maintained by City, its officers, employees, agents or volunteers, shall be in excess of Consultant’s insurance and shall not contribute with it.

16.9 All insurance coverage provided pursuant to this Agreement shall not prohibit Consultant, and Consultant’s employees, agents or subconsultants, from waiving the right of subrogation prior to a loss. Consultant hereby waives all rights of subrogation against the City.

16.10 Any deductibles or self-insured retentions must be declared to and approved by the City. At the option of City, Consultant shall either reduce or eliminate the deductibles or self-insured retentions with respect to City, or Consultant shall procure a bond guaranteeing payment of losses and expenses.

16.11 Procurement of insurance by Consultant shall not be construed as a limitation of Consultant’s liability or as full performance of Consultant’s duties to indemnify, hold harmless and defend under Section 15 of this Agreement.

16.12 If Consultant maintains broader coverage and/or higher limits than the minimums shown above, the City requires and shall be entitled to the broader coverage and/or the higher limits maintained by the Consultant. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City.

17. MUTUAL COOPERATION

17.1 City shall provide Consultant with all pertinent data, documents and other requested information as is reasonably available to City for the proper performance of Consultant’s services under this Agreement.

17.2 In the event any claim or action is brought against City relating to Consultant’s performance in connection with this Agreement, Consultant shall render any reasonable assistance that City may require.

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18. RECORDS AND INSPECTIONS
Consultant shall maintain full and accurate records with respect to all matters covered under this Agreement for a period of three years after the expiration or termination of this Agreement. City shall have the right to access and examine such records, without charge, during normal business hours. City shall further have the right to audit such records, to make transcripts therefrom and to inspect all program data, documents, proceedings, and activities.

19. PERMITS AND APPROVALS
Consultant shall obtain, at its sole cost and expense, all permits and regulatory approvals necessary in the performance of this Agreement. This includes, but shall not be limited to, encroachment permits and building and safety permits and inspections.

20. NOTICES
Any notices, bills, invoices, or reports required by this Agreement shall be deemed received on: (i) the day of delivery if delivered by hand, facsimile, email, or overnight courier service during Consultant’s and City’s regular business hours; or (ii) on the third business day following deposit in the United States mail if delivered by mail, postage prepaid, to the addresses listed below (or to such other addresses as the Parties may, from time to time, designate in writing).

If to City: If to Consultant:

Steve Carmona, City Manager
City of Pico Rivera
PO Box 1016
6615 Passons Blvd.

Pico Rivera, California 90660-1016
Josh Kim, CEO
INA LED US, INC. dba INA Display
13426 Rosecrans Ave, Suite A
Norwalk, CA, 90650
With a courtesy copy to:

Arnold M. Alvarez-Glasman, City Attorney
13181 Crossroads Parkway North
Suite 400 - West Tower
City of Industry, CA 91746

21. SURVIVING COVENANTS
The Parties agree that the covenants contained in Sections 13, 15 and Paragraph

17.2 of Section 17, of this Agreement shall survive the expiration or termination of this Agreement.

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22. TERMINATION

22.1 City shall have the right to terminate this Agreement for any reason on five (5) calendar days’ written notice to Consultant. Consultant shall have the right to terminate this Agreement for any reason on sixty (60) calendar days’ written notice to City. The effective date of termination shall be upon the date specified in the notice of termination.

Consultant agrees that in the event of such termination, City’s obligation to pay Consultant shall be limited to payment only for those services satisfactorily rendered, as solely determined by the City, prior to the effective date of termination. Consultant agrees to cease all work under this Agreement on or before the effective date of any notice of termination. All City data, documents, objects, materials or other tangible things shall be returned to City upon the termination or expiration of this Agreement.

22.2 If City terminates this Agreement due to no fault or failure of performance by Consultant, then Consultant shall be paid based on the work satisfactorily performed, as solely determined by the City, at the time of termination. In no event shall Consultant be entitled to receive more than the amount that would be paid to Consultant for the full performance of the services required by this Agreement.

23. ASSIGNMENT
Consultant shall not delegate, transfer, subcontract or assign its duties or rights hereunder, either in whole or in part, without City’s prior written consent, and any attempt to do so shall be void and of no effect. City shall not be obligated or liable under this Agreement to any Party other than Consultant.

24. NON-DISCRIMINATION AND EQUAL EMPLOYMENT OPPORTUNITY

24.1 In the performance of this Agreement, Consultant shall not discriminate against any employee, subconsultant, or employment applicant because of race, color, creed, religion, sex, marital status, national origin, ancestry, age, physical or mental handicap, medical condition or sexual orientation. Consultant will take affirmative action to ensure that subconsultants, employees, and employment applicants are treated without regard to their race, color, creed, religion, sex, marital status, national origin, ancestry, age, physical or mental handicap, medical condition or sexual orientation.

24.2 Consultant will, in all solicitations or advertisements for employees placed by or on behalf of Consultant state either that it is an equal opportunity employer or that all qualified applicants will receive consideration for employment without regard to race, color, creed, religion, sex, marital status, national origin, ancestry, age, physical or mental handicap, medical condition or sexual orientation.

24.3 Consultant will cause the foregoing provisions to be inserted in all subcontracts for any work covered by this Agreement except contracts or subcontracts for standard commercial supplies or raw materials.

Professional Services Agreement

INA DISPLAY

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25. WARRANTIES

25.1 Each Party has received independent legal advice from its attorneys with respect to the advisability of entering into and executing this Agreement, or been provided with an opportunity to receive independent legal advice and has freely and voluntarily waived and relinquished the right to do so. Each Party who has not obtained independent counsel acknowledges that the failure to have independent legal counsel will not excuse such Party’s failure to perform under this Agreement.

25.2 In executing this Agreement, each Party has carefully read this Agreement, knows the contents thereof, and has relied solely on the statements expressly set forth herein and has placed no reliance whatsoever on any statement, representation, or promise of any other party, or any other person or entity, not expressly set forth herein, nor upon the failure of any other party or any other person or entity to make any statement, representation or disclosure of any matter whatsoever.

25.3 It is agreed that each Party has the full right and authority to enter into this Agreement, and that the person executing this Agreement on behalf of either Party has the full right and authority to fully commit and bind such Party to the provisions of this Agreement.

26. CAPTIONS

26.1 The captions appearing at the commencement of the sections hereof, and in any paragraph thereof, are descriptive only and for convenience in reference to this Agreement. Should there be any conflict between such heading, and the section or paragraph thereof at the head of which it appears, the section or paragraph thereof, as the case may be, and not such heading, shall control and govern in the construction of this Agreement.

26.2 Masculine or feminine pronouns shall be substituted for the neuter form and vice versa, and the plural shall be substituted for the singular form and vice versa, in any place or places herein in which the context requires such substitution(s).

27. NON-WAIVER

27.1 The waiver by City or Consultant of any breach of any term, covenant or condition herein contained shall not be deemed to be a waiver of such term, covenant or condition or of any subsequent breach of the same or any other term, covenant or condition herein contained. In no event shall the making by City of any payment to Consultant 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 Consultant, and the making of any such payment by City shall in no way impair or prejudice any right or remedy available to City Professional Services Agreement

INA DISPLAY

Page 12 of 13 ends

with regard to such breach or default. No term, covenant or condition of this Agreement shall be deemed to have been waived by City or Consultant unless in writing.

27.2 Each right, power and remedy provided for herein or now or hereafter existing at law, in equity, by statute, or otherwise shall be cumulative and shall be in addition to every other right, power, or remedy provided for herein or now or hereafter existing at law, in equity, by statute, or otherwise. The exercise, the commencement of the exercise, or the forbearance of the exercise by any Party of any one or more of such rights, powers or remedies shall not preclude the simultaneous or later exercise by such Party of any of all of such other rights, powers or remedies.

27.3 Consultant shall not be liable for any failure to perform if Consultant presents acceptable evidence, in City’s sole judgment, that such failure was due to causes beyond the control and without the fault or negligence of Consultant.

28. COURT COSTS AND ATTORNEY FEES
In the event legal action shall be necessary to enforce any term, covenant or condition herein contained, the Party prevailing in such action, whether reduced to judgment or not, shall be entitled to its reasonable court costs, including accountants’ fees and expert witness fees, if any, and attorneys’ fees expended in such action. The venue for any litigation shall be Los Angeles County, California.

29. SEVERABILITY
If any term or provision of this Agreement or the application thereof to any person or circumstance shall, to any extent, be invalid or unenforceable, then such term or provision shall be amended to, and solely to, the extent necessary to cure such invalidity or unenforceability, and in its amended form shall be enforceable. In such event, the remainder of this Agreement, or the application of such term or provision to persons or circumstances other than those as to which it is held invalid or unenforceable, shall not be affected thereby, and each term and provision of this Agreement shall be valid and be enforced to the fullest extent permitted by law.

30. GOVERNING LAW
This Agreement shall be governed and construed in accordance with the laws of the State of California.

31. COUNTERPARTS
This Agreement may be signed in any one or more counterparts all of which taken together shall be but one and the same Agreement. Any signed copy of this Agreement or of any other document or agreement referred to herein, or copy or counterpart thereof, Professional Services Agreement

INA DISPLAY

Page 13 of 13 ends

delivered by facsimile or email transmission, shall for all purposes be treated as if it were delivered containing an original manual signature of the Party whose signature appears in the facsimile or email and shall be binding upon such Party in the same manner as though an originally signed copy had been delivered.

32. ENTIRE AGREEMENT
All documents referenced as exhibits in this Agreement are hereby incorporated in this Agreement. In the event of any material discrepancy between the express provisions of this Agreement and the provisions of any document incorporated herein by reference, the provisions of this Agreement shall prevail. This instrument contains the entire Agreement between City and Consultant with respect to the transactions contemplated herein. No other prior oral or written agreements are binding upon the Parties.

Amendments hereto or deviations herefrom shall be effective and binding only if made in writing and executed by City and Consultant.

TO EFFECTUATE THIS AGREEMENT, the Parties have caused their duly authorized representatives to execute this Agreement on the dates set forth below. “CITY” “CONSULTANT”
CITY OF PICO RIVERA INA LED US, INC. dba INA DISPLAY
______________________________ ___________________________________ Steve Carmona, City Manager Josh Kim, CEO
Dated: ________________________ Dated: _____________________________ ATTEST: APPROVED AS TO FORM:
___________________________ ___________________________________ Cynthia Ayala, City Clerk Arnold M. Alvarez-Glasman, City Attorney

EXHIBIT A

SCOPE OF SERVICES

EXHIBIT B

APPROVED FEE SCHEDULE

EXHIBIT C

TERMS FOR COMPLIANCE WITH CALIFORNIA LABOR LAW REQUIREMENTS

1. This Agreement calls for services that, in whole or in part, constitute “public works” as defined in Division 2, Part 7, Chapter 1 (commencing with Section 1720) of the California Labor Code (“Chapter 1”). Further, Consultant acknowledges that this Agreement is subject to (a) Chapter 1 and (b) the rules and regulations established by the Department of Industrial Relations (“DIR”) implementing such statutes.

Therefore, as to those Services that are “public works”, Consultant shall comply with and be bound by all the terms, rules and regulations described in 1(a) and 1(b) as though set forth in full herein.

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. Consultant 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. Consultant shall not perform work with any subconsultant that is not registered with DIR pursuant to Section 1725.5. Consultant and subconsultants shall maintain their registration with the DIR in effect throughout the duration of this Agreement. If the Consultant or any subconsultant ceases to be registered with DIR at any time during the duration of the project, Consultant shall immediately notify City.

4. Pursuant to Labor Code Section 1771.4, Consultant’s Services are subject to compliance monitoring and enforcement by DIR. Consultant 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. Consultant acknowledges receipt of a copy of the DIR determination of such prevailing rate of per diem wages, and Consultant shall post such rates at each job site covered by this Agreement.

6. Consultant 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. The Consultant shall, as a penalty to City, forfeit $200.00 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 Consultant or by any subconsultant.

7. Consultant shall comply with and be bound by the provisions of Labor Code Section 1776, which requires Consultant and each subconsultant to: keep accurate payroll records and verify such records in writing under penalty of perjury, as specified in Section 1776; certify and make such payroll records available for inspection as provided by Section 1776; and inform City of the location of the records.

8. Consultant shall comply with and be bound by the provisions of Labor Code seq. concerning the employment of apprentices on public works projects. Consultant shall be responsible for compliance with these aforementioned Sections for all apprenticeable occupations. Prior to commencing work under this Agreement, Consultant 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, Consultant and each of its subconsultants shall submit to City a verified statement of the journeyman and apprentice hours performed under this Agreement.

9. The Consultant shall not perform Work with any Subconsultant that has been debarred or suspended pursuant to California Labor Code Section 1777.1 or any other federal or state law providing for the debarment of consultants from public works. The Consultant and Subconsultants shall not be debarred or suspended throughout the duration of this Contract pursuant to Labor Code Section 1777.1 or any other federal or state law providing for the debarment of consultants from public works. If the Consultant or any subconsultant becomes debarred or suspended during the duration of the project, the Consultant shall immediately notify City.

10. Consultant acknowledges that eight hours labor constitutes a legal day’s work. Consultant shall comply with and be bound by Labor Code Section 1810.

Consultant shall comply with and be bound by the provisions of Labor Code Section 1813 concerning penalties for workers who work excess hours. The Consultant shall, as a penalty to City, forfeit $25.00 for each worker employed in the performance of this Agreement by the Consultant or by any subconsultant 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 Consultant 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.

11. 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, Consultant 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 self-insurance in accordance with the provisions of that code, and I will comply with such provisions before commencing the performance of the work of this contract.”

12. For every subconsultant who will perform work on the project, Consultant shall be responsible for such subconsultant’s compliance with Chapter 1 and Labor Code Sections 1860 and 3700, and Consultant shall include in the written contract between it and each subconsultant a copy of those statutory provisions and a requirement that each subconsultant shall comply with those statutory provisions.

Consultant shall be required to take all actions necessary to enforce such contractual provisions and ensure subconsultant’s compliance, including without limitation, conducting a periodic review of the certified payroll records of the subconsultant and upon becoming aware of the failure of the subconsultant to pay his or her workers the specified prevailing rate of wages. Consultant shall diligently take corrective action to halt or rectify any failure.

13. To the maximum extent permitted by law, Consultant shall indemnify, hold harmless and defend (at Consultant’s expense with counsel reasonably acceptable to City) City, its officials, officers, employees, agents and independent consultants 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 Consultant, its subconsultants, 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 Consultant under this Section shall survive the termination of the Agreement.

To: Mayor and City Council
From: City Attorney
Meeting Date: July 28, 2026
Subject: SECOND AMENDMENT TO EMPLOYMENT AGREEMENT NO. 23- 2208 BETWEEN STEVEN CARMONA AND THE CITY OF PICO
RIVERA
Recommendation:

1. Approve the Second Amendment to Employment Agreement No. 23-2208 (“Second Amendment”) between City Manager Steven Carmona and the City of Pico Rivera as City Manager for the City.

Strategic Priority:
1 - Fiscal & Organizational Sustainability - Create a City government build to adapt to change.

Strategy:

1.1 Build a more transparent and sustainable fiscal system to improve trust and efficiency.

Fiscal Impact:

The total salary and benefit increase of this action has a total fiscal impact of approximately $19,000 for fiscal year 2026-27. At this time, there are no additional appropriations needed.

Background:

On June 27, 2023, the City Council approved Employment Agreement No. 23-2208 (Agreement) reconfirming Steven Carmona as the City Manager for the City of Pico Rivera (City). Pursuant to the Agreement, the City Council was to conduct a performance evaluation and review the salary with his performance.

On June 23, 2026, the City Council conducted a performance evaluation of the City Manager and provided direction to prepare a Second Amendment to Employment Agreement.
13 Back to Agenda Outline
COUNCIL AGENDA REPORT – MEETING OF JULY 28, 2026
SECOND AMENDMENT TO EMPLOYMENT AGREEMENT NO. 23-2208 BETWEEN

STEVEN CARMONA AND THE CITY OF PICO RIVERA

Page 2 of 2 ends

Discussion:

The Second Amendment as presented provides the following:
• Extend the Term of Employment for the City Manager to July 27, 2029, with potential two, one (1) year extensions.
• A salary adjustment to reflect duties and responsibilities and to set the salary at a comparable level with City Managers of surrounding cities.

Conclusion:

As required by law, all changes to salary and benefits of high-ranking City officials are required to be considered and approved in an open session of a regular City Council meeting. My office was directed to prepare an amendment consistent with the changes expressed above. The Second Amendment is attached for consideration and approval.

Respectfully submitted,
Arnold M. Alvarez-Glasman
City Attorney
Enclosure: 1) Second Amendment to Agreement No. 23-2208 AGREEMENT NO. 23-2208-2

SECOND AMENDMENT TO EMPLOYMENT AGREEMENT BETWEEN

STEVEN CARMONA AND THE CITY OF PICO RIVERA
This SECOND AMENDMENT TO EMPLOYMENT AGREEMENT
BETWEEN STEVEN CARMONA AND THE CITY OF PICO RIVERA (“Second Amendment”) is entered into on the 28th day of July 2026, by and between the CITY OF PICO RIVERA, a Municipal Corporation, hereinafter referred to as “City” and STEVEN CARMONA, hereinafter referred to as “Carmona,” amending certain terms of employment as provided in the EMPLOYMENT AGREEMENT BETWEEN STEVEN CARMONA AND THE CITY OF PICO RIVERA (“Agreement”) effective June 1, 2023. This Second Amendment becomes effective July 28, 2026.

I. RECITALS
A. Effective June 1, 2023, City and Carmona entered into an Employment Agreement whereby Carmona was reconfirmed to serve in the position of City Manager and to exercise the powers and duties set forth in Chapter 2.04 of the Pico Rivera Municipal Code.

B. On June 24, 2025, the City Council approved a First Amendment to the Employment Agreement (“First Amendment”) amending certain terms and conditions of Carmona’s employment with the City.

C. The City wishes to amend certain terms of the Agreement and First Amendment. All terms and conditions of employment contained in the Agreement and First Amendment not specifically amended by this Second Amendment shall remain in full force and effect.

NOW, THEREFORE, City and Carmona agree as follows:

II. AMENDMENT TO AGREEMENT
The following Section to the Agreement are amended to read as follows:
(a) Section I of the Agreement is amended as follows:

I. Term of this Agreement
This Agreement provides for the continued relationship of the City and Carmona for an initial term consisting of a three (3) year period (“Initial Term”), beginning July 28, 2026, and continuing to July 27, 2029, unless Carmona earlier resigns his position as set forth in Section IV or is terminated as set forth in Sections V and VI. In addition to the Initial Term, the City may extend this Initial Term by two (2) additional one (1) Enclosure 1
13a
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Second Amendment to Employment Agreement No. 23-2208

STEVEN CARMONA

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year periods (“Extended Term”) by providing Carmona written notice of extending the Initial Term at least ninety (90) days prior to the expiration of the Initial Term date. The Initial Term and any additional Extended Term(s) negotiated between the Parties shall collectively be referred to as the “Term” of this Agreement.

Unless otherwise specified, all the provisions, terms, and conditions of this Agreement shall apply to both the Initial Term and any Extended Term. All other terms and conditions of this Agreement shall automatically be extended unless express modification is made in writing; in no way, however, shall the terms and conditions be lessened or decreased below the terms of this Agreement. It is the intent of this section that the Parties shall not have to re-negotiate each of the terms of this Agreement each time the Agreement may be extended. (b) Section III of the Agreement is amended as follows:

III. Salary
Due to additional duties assigned to the City Manager and to provide comparable compensation to Carmona in relation to other City Managers in similar cities, City agrees to pay Carmona a base salary increase in an amount of a five percent (5%) to be applied to Carmona’s current salary as of June 23, 2026. This salary adjustment will commence on July 1, 2026.

Salary payments shall be made in payroll period installments at the same time as other employees of City are paid.

In addition to the base salary stated above, consistent with the Performance Evaluation terms set forth in Section VII below, in the event Carmona achieves the goals and project completion objectives defined by the City Council, Carmona will be paid an additional amount to be determined by the City Council at the time of his annual Performance Evaluation.

III. ALL OTHER TERMS AS SET FORTH IN PREVIOUS AGREEMENTS SHALL REMAIN IN FULL FORCE AND EFFECT.

This Second Amendment integrates all terms and conditions mentioned herein or incidental hereto and supersedes all negotiations or previous understandings between the parties. Except as specifically set forth herein, all other terms of the Agreement and First Amendment shall remain in full force and effect. In the event of a conflict between the terms of this Second Amendment and the Agreement and First Amendment, the terms of this Second Amendment shall control.

Second Amendment to Employment Agreement No. 23-2208

STEVEN CARMONA

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IN WITNESS WHEREOF, the City of Pico Rivera (CITY) has caused this Second Amendment to be signed and executed on its behalf by its Mayor and duly attested by its City Clerk, and Steven Carmona (Carmona) has signed and executed this SECOND AMENDMENT TO EMPLOYMENT AGREEMENT
BETWEEN STEVEN CARMONA AND THE CITY OF PICO RIVERA, in triplicate, the day and year first written above.

CITY OF PICO RIVERA: STEVEN CARMONA:
__________________________ _______________________________ Gustavo V. Camacho, Mayor Steven Carmona
ATTEST: APPROVED AS TO FORM:
__________________________ _________________________________ Cynthia Ayala, City Clerk Arnold M. Alvarez-Glasman, City Attorney
A Regular Meeting of the Water Authority was held in the Council Chamber, Pico Rivera City Hall, 6615 Passons Boulevard, Pico Rivera, California.

Meeting was jointly held with the City Council, Housing Assistance Agency and Water Authority. Items appear as listed on the combined agenda for the meeting of June 23, 2026.

Authority President Camacho called the meeting to order at 6:08 p.m.

PRESENT: Garcia, Lara, Lutz, Sanchez, Camacho
ABSENT: None
PUBLIC COMMENTS: None
CONSENT CALENDAR ITEMS:

Water Authority:

13. Minutes:
• Approved Water Authority regular meeting of March 24, 2026

14. Agreement with Weck Laboratories, Inc. for Potable Water Analytical and Sampling Services Related to Public Water Supply. (500)

1. Awarded a three (3) year contract with two (2), one-year renewal options with Weck Laboratories, Inc., for potable water analytical and sampling services related to public water supply for an annual amount of $250,000, for a not-to-exceed amount of $750,000; and

2. Authorized the Executive Director or his designee to execute the contract in a form approved by the General Counsel.

Agreement No. WA-26-83
Motion by Vice President Dr. Sanchez, seconded by Commissioner Garcia to approve Consent Calendar Item Nos. 13 and 14. Motion carries by the following roll call vote:

AYES: Garcia, Lara, Lutz, Sanchez, Camacho
NOES: None
CONSENT CALENDAR ITEMS PULLED FOR FURTHER DISCUSSION: None REGULAR AGENDA: None
ADJOURNMENT:

Tuesday, June 23, 2026
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6-23-26 Water Minutes

Page 2 of 2 ends

President Camacho adjourned the Water Authority meeting at 8:16 p.m. in memory of Amadita M. Sanchez, long-time volunteer for the Christmas Baskets Committee and Pio Pico Women’s Club member and Pico Rivera resident Clarissa Janel Garcia. There being no objection it was so ordered.

PRESENT: Garcia, Lara, Lutz, Sanchez, Camacho
ABSENT: None
________________________________
Gustavo V. Camacho, President
ATTEST:
________________________________
Cynthia Ayala, CMC, Authority Secretary
I hereby certify that the foregoing is a true and correct report of the proceedings of the Water Authority regular meeting dated June 23, 2026, and approved by the Water Authority on July 28, 2026.
_______________________________
Cynthia Ayala, CMC, Authority Secretary
To: President and Commissioners
From: Executive Director
Meeting Date: July 28, 2026
Subject: PURCHASE OF A 2026 JOHN DEERE 410 P-TIER BACKHOE LOADER
Recommendation:

1. Authorize the purchase of a 2026 John Deere 410 P-Tier Backhoe Loader from John Deere, utilizing Cooperative Agreement Contract No. 011723-JDC through Sourcewell, in the amount not to exceed $208,000 and authorize the Executive Director to execute all documents related to the purchase of the equipment; and

2. Authorize the Executive Director, or his designee, to execute all the agreements necessary to facilitate the sale or disposal of Unit No. 386.

Strategic Priority:
3 - Infrastructure - Plan, fund, build, and maintain reliable and cost-effective infrastructure that contributes to enhancing quality of life Strategy:

3.4 Facilitate a high-level of maintenance of City infrastructure to reduce increased costs from prolonged deferral.

Fiscal Impact:

There is sufficient funding in the fiscal year (FY) 2026-27 Adopted Budget in the Pico Rivera Water Authority (PRWA) fund (Fund 550), and the $208,000 purchase will be made using Account No. 550.40.4920-57300 (Furniture and Equipment). No budget amendments are needed.

Discussion:

The City of Pico Rivera vehicle and equipment replacement standards generally specify 15 Back to Agenda Outline
WATER AUTHORITY AGENDA REPORT – MEETING OF JULY 28, 2026 PURCHASE OF A 2026 JOHN DEERE 410 P-TIER BACKHOE LOADER

Page 2 of 3 ends

that vehicles are eligible for replacement after 10 years of service or 100,000 miles. Due to significant wear and tear on certain vehicles and equipment operated by the Public Works Department field personnel, additional factors are sometimes considered in the replacement process, including mechanical problems, hours of service, electrical failures, and excessively high repair costs.

Unit No. 386, a 2019 Case 580SN, has experienced recurring mechanical and hydraulic failures since it was first placed into service. Unit No. 386 is a heavy-duty piece of equipment that is tracked using engine hours instead of mileage because it often runs idle or operates complex equipment while remaining completely still. During use, this heavy-duty equipment often sits at a job site for hours with the engine running to power hydraulic pumps, causing internal wear. The current equipment failure halts and delays daily operations and operates inefficiently.

Over the past three years, the equipment has been taken out of service multiple times for significant hydraulic repairs. Initially, several hydraulic hoses and control valves that operate the backhoe arm and bucket failed and required replacement at a cost of approximately $10,000. A few months later, the unit experienced another hydraulic failure involving a separate set of valves that control the front loader bucket. Those repairs totaled approximately $18,000.

Most recently, two of the unit's primary hydraulic hoses burst while the equipment was in operation, causing the backhoe arms to drop unexpectedly while staff was working in close proximity to the machine. Fortunately, no injuries occurred; however, the incident raised serious safety concerns regarding the continued operation of the equipment.

Following this incident, the unit was inspected by the manufacturer's service technician.

After completing a comprehensive evaluation, the technician recommended replacing the hydraulic valve assemblies that control the outriggers, backhoe arm, and front loader bucket. The estimated cost of these repairs is approximately $50,000.

Given the unit's history of recurring hydraulic failures, the escalating repair costs, and the significant safety risks associated with continued operation, replacement of the unit is recommended rather than investing in additional major repairs.

The following table outlines the vehicle unit number, year, make, model, hours of service, proposed replacement, and the quoted purchase price.

Vehicle
Unit
No.

Yr./ Make
/Model
Hours of
service Replacement Model Replacement
Quote
386 2019 Case
580SN
4,072 2026 John Deere 410 P-Tier
Backhoe Loader $207,927
TOTAL: $207,927
The recommended purchase of a 2026 John Deere 410 P-Tier Backhoe Loader will be WATER AUTHORITY AGENDA REPORT – MEETING OF JULY 28, 2026 PURCHASE OF A 2026 JOHN DEERE 410 P-TIER BACKHOE LOADER

Page 3 of 3 ends

procured through a cooperative purchasing contract authorized by Section 3.20.030 of the Pico Rivera Municipal Code (PRMC), Sourcewell Contract No. 011723-JDC.

Sourcewell Contract No. 011723-JDC offers a 41% discount on the base equipment price for government agency purchases.

Purchasing through vetted cooperative purchasing agreements meets the requirements of Section 3.20.030 of the PRMC and allows staff to secure the most suitable vehicles and equipment. Furthermore, such cooperative agreements ensure that the procurement of goods and services adheres to public purchasing regulations, is conducted through competitive solicitation, and guarantees that the City obtains the most advantageous pricing, all while streamlining the procurement process.

The aged equipment being replaced is recommended for disposal by auction to recover any residual value. The PRMC Section 3.20.100 allows the City to sell aged equipment and inoperable vehicles through professional auctioneers. Utilizing an auction process enables the City to secure the highest possible price for the vehicle. It is therefore recommended that the Pico Rivera Water Authority authorize the Executive Director to proceed with the sale of the surplus equipment at an auction to achieve efficiency and maximize resale value.

Conclusion:

Staff recommend that the Pico Rivera Water Authority authorize the purchase of a 2026 John Deere 410 P-Tier Backhoe Loader in the amount not-to-exceed $208,000, and authorize the Executive Director, or his designee, to execute all related documents for the purchase of the equipment. Additionally, authorize the Executive Director, or his designee, to execute any agreements necessary to facilitate the sale or disposal of the aged equipment, Unit No. 386.

Steve Carmona
SC:NN:ML:np

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
11/12/2025 Sanchez/Camacho SNAP Benefits Assistance to residents 11/12/2025 Sanchez/Garcia Tow Truck Company Ordinance regulation/procurement process Alvie Betancourt

GOOD OF THE ORDER
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Pico Rivera City CouncilJuly 28, 2026

Pico Rivera City Council
July 28, 2026