Poway City Council
June 17, 2025

AG EN DA Poway City Council
Council Chamber I 13325 Civic Center Drive I Poway, CA I 92064 June 17, 2025 I 7 p.m.

Thank you for participating in your local government and the City of Poway Council meetings.

Meetings I Regular City Council meetings are held on the first and third Tuesday of the month at 7:00 p.m. in the Council Chambers located at 13325 Civic Center Drive, Poway, CA 92064. The Council Chamber will be open to the public.

Public Meeting Access I Members of the public may attend the City Council meeting in person, or watch the City Council meeting live online. Regular City Council meetings are broadcast live on Cox Communication Channel 24 and Spectrum Channel 19. Council meeting videos are archived and available for viewing on the City's website.

Speakers I Persons wishing to address the Council on matters not on the agenda may do so under Public Comment. Those wishing to speak on items on the agenda may do so when the item is being considered. Please submit a Speaker's Slip to the City Clerk prior to the meeting or the announcement of the item. All comments will be limited to three (3) minutes. Per the Poway Municipal Code, the speaking time may be reduced.

To Watch Live:
www .poway.org/councilmeetings
Agenda Materials I This agenda contains a brief summary of each item the Council will consider.

The Agenda and Agenda Packet is posted seven (7) days prior to regular City Council meetings and are available for viewing on the City's website at www .poway .org. Sign up at https://poway.org/list.asp x to receive email notifications when City Council agendas are published on line. Items listed on the agenda with a"#" symbol are in preparation.

PLEASE NOTE: Written comments received via email before 3:00 p.m. the day prior to the meeting will be distributed as formal additional material as well as be made available online prior to the City Council meeting. Written comments received after this deadline will be forwarded to the Council, but not available online until after the City Council meeting.

American Disabilities Act Title II I In compliance with the Americans with Disabilities Act of 1990, persons with a disability may request an agenda in appropriate alternative formats as required by Title II. Any person with a disability who requires a modification or accommodation in order to participate in a meeting should direct such request to the City Clerk's office 858-668-4530 at least 24 hours prior to the meeting.

Steve Vaus
Mayor
Peter De Hoff
Deputy Mayor
Tony Blain
Council member
Jenny Maeda
Councilmember
Christopher J. Pikus
Councilmember
Reminder I As a courtesy to all attendees, please silence all electronic devices and engage in conversations outside the Council Chambers.

The City Council also sits as the City of Poway Planning Commission, Poway Housing Authority, Public Financing Authority and Successor Agency to the Poway Redevelopment Agency CALL TO ORDER:

ROLL CALL:

PLEDGE OF ALLEGIANCE:

MOMENT OF SILENCE:

PRESENTATION:

Recognition - FIRST Robotics Competition Team 6995, NOMAD PUBLIC COMMENT: In accordance with State law, an item not scheduled on the agenda may be brought forward by the general public for comment; however, the City Council will not be able to discuss or take action on any issue not included on the agenda. You may speak up to three (3) minutes.

Per the Poway Municipal Code, the speaking time may be reduced. Speakers have one opportunity to address the Council under Public Comment.

CONSENT CALENDAR: The Consent Calendar may be enacted in one motion by the Council with a Roll Call Vote without discussion unless a Councilmember, a member of the public, or City Manager requests that an item be removed for discussion.

1. Approval of Reading by Title Only and Waiver of Reading in Full of Ordinances on this Agenda

2. Approval of the April 1, 2025 Regular City Council Meeting Minutes

3. Resolution Authorizing the Acceptance of the 2024 State Homeland Security Grant Program Funds

4. Resolution Authorizing the Acceptance of the 2024 Urban Area Security Initiative Grant Program Funds

5. Award of Contract to M-Rae Engineering, Inc. for the FY 2024-25 Water Valve Replacement Project, Bid No. 25-013, and Determination the Project is Categorically Exempt from the California Environmental Quality Act

6. Award of Contract to Vullutini Corporation DBA Royal Electric Company for the Water Pump Station 8 (PS-8) Motor Control Center (MCC) Upgrades Project, Bid No. 25-008 and Determination the Project is Categorically Exempt from the California Environmental Quality Act (CEQA)

7. Resolution Adopting a List of Projects for Fiscal Year 2025-26, Funded by Senate Bill 1: The Road Repair and Accountability Act of 2017
2 of 4 Regular City Council Meeting June 17, 2025

8. Award of Contract to Payco Specialties, Inc., for the 2025-2026 Citywide Striping Project, Bid No. 25-011 and Determination the Project is Categorically Exempt from the California Environmental Quality Act (CEQA)

9. Award of Contract to Pavement Coatings Co., for the 2025-2026 Street Maintenance Project Bid No. 25-012 and Determination the Project is Categorically Exempt from the California Environmental Quality Act (CEQA)
ORDINANCES FOR INTRODUCTION: None
PUBLIC HEARINGS:

10. Report on Vacancies, and Recruitment and Retention Efforts City Manager's Recommendation: It is recommended the City Council receive and file the report.

11. Proposed Fiscal Year 2025-26 Operating Budget & Capital Improvement Program, Including a Resolution Adopting an Amendment to the TransNet Local Street Improvement Program List of Projects for Fiscal Years 2024-25 through 2028-29
City Manager's Recommendation: It is recommended the City Council take public input, close the public hearing, receive the Budget Review Committee Report, consider their recommendations, and adopt the Resolutions.

STAFF REPORTS: None
WORKSHOPS: None
COUNCIL-INITIATED ITEMS: None
COUNCIL COMMITTEE REPORTS and ANNOUNCEMENTS: Pursuant to AB1234 - (G.C. 53232(d)) CITY MANAGER ITEMS:

CITY ATTORNEY ITEMS: (Including any public report of any action taken in closed session) CLOSED SESSION:

12. Conference with Legal Counsel - Existing Litigation (Government Code § 54956.9(d)(1 ))
Name of Case: Endangered Habitats League v. City of Poway, et. al., San Diego Superior Court, Case No. 25CU030278C
AD!OURNMENT:
3 of 4 Regular City Council Meeting June 17, 2025
State of California
County of San Diego
)
) 55.
)

AFFIDAVIT OF POSTING
I, Carrie Gallagher, CMC, City Clerk of the City of Poway, hereby declare under penalty of perjury that this notice of a Regular meeting as called by the City Council of the City of Poway was posted and provided on June 10, 2025.

Said meeting to be held at 7:00 p.m., June 17, 2025, in the Poway City Council Chambers, 13325 Civic Center Drive, Poway, California. Said notice was posted on the Bulletin Board at the entrance to City Hall.

Carrie Gallagher, CMC, City~
4of4 Regular City Council Meeting June 17, 2025
AGENDA REPORT CityofPoway
DATE:

TO:

FROM:

June 17, 2025
Honorable Mayor and Members of the City Council
Carrie Gallagher, City Clerk ~
(858) 668-4535 or [email protected]

CITY COUNCIL
SUBJECT: Approva l of the Apri l 1, 2025 Regular City Council Meeting Minutes summary
The City Council Meet ing Minutes submitted hereto for approval are:
• April 1, 2025 Regular City Council Meetin g Minutes
The Poway City Counc il sits as the Poway Planning Commission, the Poway Housing Author ity, the Public Financing Authority, and the Successor Agency to the Poway Redevelopment Agency.

Recommended Action:

It is recommended the City Council approve the Apri l 1, 2025 Regular City Council Meet ing Minutes .

Public Notification:

None.

Atta chments:

A. April 1, 2025 Regular City Council Meeting Minutes
Reviewed/Approved By:
w~~
Assistant City Manager
1 of 4
Reviewed By:

Alan Fenstermacher
City Attorney

CITY OF POWAY

CITY COUNCIL REGULAR MEETING

MINUTES
April 1, 2025
City Council Chambers
13325 Civic Center Drive, Poway, California
(Per Government Code 54953)
(Meeting Called to Order as City Council/City of Poway Planning Commission/Poway Housing Authority /Public Financing Authority and Successor Agency to the Poway Redevelopment Agency) CALL TO ORDER:

Mayor Vaus called the Regular Meeting to order at 7:00 p.m.

ROLL CALL:

Present: Tony Blain, Jenny Maeda, Peter De Hoff, Steve Vaus

Absent: Christopher J Pikus
STAFF MEMBERS PRESENT:

City Manager Chris Hazeltine; City Attorney Alan Fenstermacher; City Clerk Carrie Gallagher; Director of Development Services Julie Procopio; Director of Finance Craig Schmollinger; Director of Human Resources and Risk Management Jodene Dunphy; Director of Public Works Eric Heidemann; Director of Community Services Audrey Denham; Fire Chief Brian Mitchell; Captain Claudia Delgado, Sheriff's Department.
(Note: Hereinafter the titles Mayor, Deputy Mayor, Councilmember, City Manager, City Attorney, City Clerk and Director of Finance shall be used to indicate Mayor/Chair, Deputy MayorNice Chair, Councilmember/Director, City Manager/Executive Director, Assistant City Manager/Assistant Executive Director, City Attorney/Counsel , City Clerk/Secretary and Director of Finance/Finance Officer.)
PLEDGE OF ALLEGIANCE:

Boy Scout Troop 663 led the Pledge of Allegiance .

MOMENT OF SILENCE:

Mayor Vaus led a moment of silence.

PRESENTATIONS:

None.
2 of4
City of Poway - Minutes - April 1, 2025
PUBLIC COMMENT :

Nick Carruthers spoke in support of raising in lieu fees to generate funds for affordable housing projects.

Justin Matthews, representing Boy Scout Troop 663, discussed preservation efforts for historical buildings and sites in Poway.

Joe St. Lucas spoke regarding potential impacts on defensible space requirements related to the new California State-issued fire hazard maps.

Anita Edmondson voiced concerns over a lack of District 2 Council representation and spoke in support of efforts to recall Councilmember Blain.

John Couvrette provided an update on the Councilmember Tony Blain recall effort.

John Mullin shared email exchanges between himself and Councilmember Blain and provided an update on the Tony Blain recall effort.

CONSENT CALENDAR :

Motioned by Mayor Vaus, seconded by Deputy Mayor De Hoff to approve Consent Calendar Items 1 through 6. Motion carried 410/1 by the following roll-call vote:

Ayes:

Noes:

Abstained:

Absent:

Blain, Maeda, De Hoff, Vaus
None
None
Pikus
Disqualified: None

1. Approval of Reading by Title Only and Waiver of Reading in Full of Ordinances on this Agenda

2. Approval of the February 4, and February 18, 2025 Regular City Council Meeting Minutes and the February 24, 2025 Special Meeting Minutes
ORDINANCES FOR INTRODUCTION:

None.

PUBLIC HEARINGS:

None.

STAFF REPORTS:

None.

WORKSHOPS:

None.
3 of 4
City of Poway - Minutes - April 1, 2025
COUNCIL-INITIATED ITEMS:

None.

COUNCIL COMMITTEE REPORTS and ANNOUNCEMENTS: Pursuant to AB1234 - (G.C. 53232(d))
Councilmember Blain discussed attending the Back to the Garden: Beatles Alone Together concert presented by Poway OnStage.

A motion was made by Councilmember De Hoff to "consider new rules defining attendance criteria for Councilmembers during City Council meetings at the April 15, 2025 Regular City Council Meeting". Motion passed by Council Concurrence.

A motion was made by Mayor Vaus to "consider a policy to call for a Special Election if a Council vacancy occurs within the first 18 months of a four-year term at the April 15, 2025, Regular City Council Meeting". Motion carried by Council Concurrence.

A motion was made by Mayor Vaus to "consider a Municipal Code amendment to implement financial penalties for violations of the Brown Act, Poway Municipal Code, or Council Code of Conduct at the April 16, 2025 Regular City Council Meeting". Motion failed with no Council Concurrence.

CITY MANAGER ITEMS:

None.

CITY ATTORNEY ITEMS: (Including any public report of any action taken in closed session) None.

CLOSED SESSION:

None.

ADJOURNMENT:

The meeting was adjourned at 7:23 p.m.
4 of4
Carrie Gallagher, CMC
City Clerk
City of Poway, California
June 17, 2025, Item #3
DATE:

TO:

FROM:

CONTACT:

SUBJECT:

Summary:

AGENDA REPORT CityofPoway
June 17, 2025
Honorable Mayor and Members of the City Council
Brian Mitchell, Fire Chief .fr"
Jenna Stein, Sr. Management Analyst
858-668-4474 or [email protected]

CITY COUNCIL
Resolution Authorizing the Acceptance of the 2024 State Homeland S_ecurity Grant Program Funds
The Department of Homeland Security provides funds through the State Homeland Security Grant Program (SHSP) to cities to build and sustain emergency response capabilities. The grant is administered regionally by the San Diego County Office of Emergency Services. Funds are allocated to each jurisdiction based on population. The City of Poway's allocation for the SHSP Grant Fiscal Year 2024 is $15,573.

Recommended Action:

It is recommended the City Council adopt the attached resolution authorizing staff to accept funds through the 2024 State Homeland Security Grant Program, to include appropriation of initial funds of $15,573 into a project fund from the General Fund unassigned fund balance to be reimbursed through the grant program.

Discussion:

The Department of Homeland Security provides funds through the SHSP Grant Program to states and local agencies to build, sustain, and deliver emergency preparedness and response capabilities. The funds help advance the program's goals and objectives.

The County of San Diego applies for, receives and administers federal grant funds associated with the program. The County's Unified Disaster Council, of which Poway is a member, is the governing body that determines the local grant distribution formula, which is based on each jurisdiction's population.

Cities are reimbursed by the County after making qualified purchases.

One of the program's goals is to strengthen communication capabilities with an objective to implement a statewide interoperability plan. To advance this goal the City plans to use the allocated $15,573 in grant funds to assist with the purchase and installation of a mesh network modem for the 1 of 4
June 17, 2025, Item #3
Fire Battalion Chief command vehicle. The rear hatch of the command vehicle is designed as a workspace to manage emergency incidents. The vehicle currently contains multiple 800 MHz and VHF radios to communicate with emergency resources while commanding an emergency incident, a pull­ out tray with tactical board and forms to use as incident management tools, and two touch screen monitors used to display incident information and operate incident management software programs.

This funding will be used to enhance the existing workspace by providing a mesh network capable of displaying live helicopter video feeds augmented with emergency management data.

Environmental Review:

The item is not subject to review under the California Environmental Quality Act (CEQA).

Fiscal Impact:

The State Homeland Security Grant Program does not require matching funds. Upon completion of the grant-related expenditures in the amount of $15,573, the General Fund will be reimbursed through the grant funding. It is anticipated all grant expenditures and reimbursements will be completed by December 30, 2026. Approval of this action will create a project fund and appropriate initial funds from the City of $15,573 from the General Fund unassigned fund balance in the Fiscal Year 2025-26 Budget. Appropriated funds will be reimbursed at a later date from the grant program.

Public Notification:

None.

Attachments:

A. Resolution
Reviewed/Approved By:

Wend aserman
Assistant City Manager
2 of 4
Reviewed By:

Alan Fenstermacher
City Attorney
A~
Chris H
City Manager
June 17, 2025, Item #3
RESOLUTION NO. 25-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

POWAY, CALIFORNIA, AUTHORIZING THE ACCEPTANCE OF
FUNDS THROUGH THE 2024 STATE HOMELAND SECURITY

GRANT PROGRAM
WHEREAS, the City of Poway is eligible to receive federal grant funds through the 2024 State Homeland Security Grant Program for emergency preparedness; WHEREAS, the approved grant allocation for the City of Poway is $15,573; WHEREAS, the federal grant funds for the State Homeland Security Grant Program require no City matching funds and all grant approved expenditures are one-hundred percent reimbursable; and
WHEREAS, it is the desire of the City of Poway to participate in this program to enhance capabilities to build, sustain and deliver emergency preparedness and response functions.

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

SECTION 1: The following staff are hereby authorized to execute for and on behalf of the City of Poway, a public entity established under the laws of the State of California, any actions necessary for the purpose of obtaining federal financial assistance • provided by the federal Department of Homeland Security and sub-granted through the State of California.

Brian Mitchell, Fire Chief
Chuy Ramirez, Deputy Fire Chief
Jenna Stein, Sr. Management Analyst
II
II
II
II
II
II
II
II
II
II
II
3 of4 ATTACHMENT A
June 17, 2025, Item #3
Resolution No. 25-

PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Poway, California on the 17th day of June, 2025 by the following vote, to wit:

AYES:

NOES:

ABSTAINED:

ABSENT:

DISQUALIFIED:

Steve Vaus, Mayor
ATTEST:

Carrie Gallagher, CMG, City Clerk
4of4
June 17, 2025, Item #4
DATE:

TO:

FROM:

CONTACT:

SUBJECT:

Summary:

AGENDA REPORT CityofPoway
June 17, 2025
Honorable Mayor and Members of the City Council
Brian Mitchell, Fire Chief,//>/}-
Jenna Stein, Sr. Management Analyst
858-668-4474 or [email protected]

CITY COUNCIL
Resolution Authorizing the Acceptance of the 2024 Urban Area Security Initiative Grant Program Funds
The Department of Homeland Security provides funds through the Urban Area Security Initiative Grant Program (UASI) to cities to build and sustain emergency response capabilities. The grant is administered regionally by the City of San Diego Office of Emergency Services. Submitted grant­ funded projects are vetted and approved annually by the Urban Area Working Group. For the UASI Grant Fiscal Year 2024, the City of Poway has been awarded $29,990 for firefighter training.

Recommended Action:

It is recommended the City Council adopt the attached resolution authorizing staff to accept funds through the 2024 Urban Area Security Initiative Grant Program, to include appropriation of initial funds of$29,990 into a project fund from the General Fund unassigned fund balance to be reimbursed through the grant program.

Discussion:

The Department of Homeland Security provides funds through the UASI Grant Program to states and local agencies to build, sustain, and deliver emergency preparedness and response capabilities. The funds help advance the program's goals and objectives.

The City of San Diego Office of Emergency Services applies for, receives and administers federal grant funds associated with the program. The Urban Area Working Group acts as the governing body to approve projects and allocate grant funds. The Urban Area Working Group is a collaborative subcommittee of the San Diego County Unified Disaster Council (UDC), of which the City of Poway is a member. Cities are reimbursed by the City of San Diego Office of Emergency Services after making qualified purchases.

One of the program's goals is to strengthen regional training programs. To advance this goal the City 1 of 4
June 17, 2025, Item #4
plans to use the allocated $29,990 in grant funds to offer training for Fire Department personnel to maintain readiness, offer career development, and to prepare the workforce for future opportunities.

This program offers reimbursable training that will expand the capabilities of our workforce. After individuals successfully complete the recommended training, cities are reimbursed through the UASI grant for costs including tuition, overtime, and backfill.

Environmental Review:

The item is not subject to review under the California Environmental Quality Act (CEQA).

Fiscal Impact:

The Urban Area Security Initiative Grant Program does not require matching funds. Upon completion of the grant-related expenditures in the amount of $29,990, the General Fund will be reimbursed through the grant funding. It is anticipated all grant expenditures and reimbursements will be completed by December 30, 2026. Approval of this action will create a project fund and appropriate initial funds from the City of $29,990 from the General Fund unassigned fund balance in the Fiscal year 2025-26 Budget. Appropriated funds will be reimbursed at a later date from the grant program.

Public Notification:

None.

Attachments:

A. Resolution
Reviewed/Approved By:

We~ Kaserman
Assistant City Manager
2 of4
Reviewed By:

Alan Fenstermacher
City Attorney
Approved By:
c~
City Manager
June 17, 2025, Item #4
RESOLUTION NO. 25-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

POWAY, CALIFORNIA, AUTHORIZING THE ACCEPTANCE OF
FUNDS THROUGH THE 2024 URBAN AREA SECURITY

INITIATIVE GRANT PROGRAM
WHEREAS, the City of Poway is eligible to receive federal grant funds through the 2024 Urban Area Security Initiative Grant Program for emergency preparedness; WHEREAS, the approved grant allocation for the City of Poway is $29,990; WHEREAS, the federal grant funds for the Urban Area Security Initiative Grant Program require no City matching funds and all grant approved expenditures are one-hundred percent reimbursable; and
WHEREAS, it is the desire of the City of Poway to participate in this program to enhance capabilities to build, sustain and deliver emergency preparedness and response functions.

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

SECTION 1: The following staff are hereby authorized to execute for and on behalf of the City of Poway, a public entity established under the laws of the State of California, any actions necessary for the purpose of obtaining federal financial assistance provided by the federal Department of Homeland Security and sub-granted through the State of California.

Brian Mitchell, Fire Chief
Chuy Ramirez, Deputy Fire Chief
Jenna Stein, Sr. Management Analyst
II
II
II
II
II
II
II
II
II
II
II
3 of 4 ATTACHMENT A
June 17, 2025, Item #4
Resolution No. 25-

PASSED, APPROVED AND ADOPTED at a Regular Meeting of the City Council of the City of Poway, California on the 17th day of June, 2025 by the following vote, to wit:

AYES:

NOES:

ABSTAINED:

ABSENT:

DISQUALIFIED:

Steve Vaus, Mayor
ATTEST:

Carrie Gallagher, CMC, City Clerk
4of4
June 17, 2025, Item #5
DATE:

TO:

FROM:

CONTACT:

SUBJECT:

Summary:

AGENDA REPORT CityofPoway
June 17, 2025
Honorable Mayor and Members of the City Council
Julie Procopio, Director of Development Servicesg
Miguel Solano, Assistant Engineer
(858) 668-4653 or [email protected]

CITY COUNCIL
Award of Contract to M-Rae Engineering, Inc. for the FY 2024-25 Water Valve Replacement Project, Bid No. 25-013, and Determination the Project is Categorically Exempt from the California Environmental Quality Act
This action will award a construction contract to M-Rae Engineering, Inc. for the Fiscal Year (FY) 2024- 25 Water Valve Replacement project. This project involves the replacement of nine existing water valves in various locations throughout the potable water distribution system in the City. The current valves identified for replacement are beyond their useful life.

Recommended Action:

It is recommended the City Council:
1) Award the construction contract for the FY 2024-25 Water Valve Replacement project to M-Rae Engineering, Inc., in the amount of $360,500.00 and authorize the City Manager to execute the contract (Attachment A); and
2) Determine the Project is Categorically Exempt from the California Environmental Quality Act (CEQA).

Discussion:

This project was created in coordination with the Public Works Utilities Division to supplement in­ house maintenance of water valves. Water valves are critical components of the City's potable water distribution system, used to control the flow of drinking water through underground pipelines. They allow staff to isolate sections of the system for maintenance, repairs or emergency shutoffs. As valves age, they can become inoperable or unreliable, making timely replacement essential to ensuring continued system performance and uninterrupted water service.

A total of nine water valves, located in various parts of the distribution system, have been identified by the Public Works Utilities Division to have aged beyond the end of their reliable service life. To minimize disruptions to traffic flow, water service and daytime operations, some portions of the work to replace the nine identified water valves will be conducted during night hours. Work scheduled 1 of 12
June 17, 2025, Item #5
during the day will be limited to activities that are not expected to interfere with traffic, water service or nearby properties. This approach allows crews to complete the work efficiently while reducing impacts to the community and surrounding infrastructure. Nearby residents and businesses that may be affected by the project will be notified in advance of the upcoming work. Notifications will include information about anticipated work hours, potential noise and any temporary service interruptions.

Funding for this work has been programmed across the FY 2024-25 and FY 2025-26 budgets to ensure continuity in construction activities and address previously identified maintenance needs.

Bids were opened on May 14, 2025. A total of three bids were received for the construction contract, ranging as follows:

Company Total Bid Amount
M-Rae Engineering, Inc. $360,500.00
DB Pipeline, Inc. $395,000.00
Palm Engineering $533,000.00*
*Corrected Amount based on extension of unit prices and quantities The low bid of $360,500.00, submitted by M-Rae Engineering, Inc., is an acceptable bid that is responsive to, and meets the requirements of, the bid specifications. The contract time for this project is 40 working days consisting of a combination of day and night work. The engineer's estimate is $405,000.00.

Environmental Review:

The proposed project is Categorically Exempt from the California Environmental Quality Act (CEQA) as a Class 1 Categorical Exemption, pursuant to Section 15301 (C) of the CEQA Guidelines, in that the project involves minor alterations consisting of replacement of existing equipment.

Fiscal Impact:

Sufficient funds have been programmed in the FY 2024-25 Water Valve Replacement project account (WT002), with additional funding included in the proposed FY 2025-26 budget to be considered by City Council. The City actively plans for water system repair and replacement as part of the budgeting process, with funding for this project provided by the Water Operations Fund (5100). This contract will be executed upon adoption of the proposed budget. The City is applying funding across FY 2024-25 and FY 2025-26 as part of the budget development process for water system repair and replacement.

Public Notification:

None.

Attachments:

A. Construction Contract
2 of 12
June 17, 2025, Item #5
Reviewed/ Approved By:

Assistant City Manager
3 of 12
Reviewed By:

Alan Fenstermacher
City Attorney
Approved By:

Ch~
City Manager
June 17, 2025, Item #5
SECTION 8

CONSTRUCTION CONTRACT

CITY OF POWAY
FY 2024-25 WATER VALVE REPLACEMENT
This Contract made and entered into this 18th day of June 2025, by and between City of Poway, a municipal corporation of the State of California, hereinafter referred to as "City" and M-Rae Engineering, Inc. hereinafter referred to as "Contractor." The City and the Contractor, for the consideration hereinafter named, mutually agree as follows:

1. The complete Contract includes all of the Contract Documents, which are incorporated herein by this reference, and include:
a. This Contract
b. Contract Addenda
c. Contract Change Orders
d. Instructions to Bidders, Proposal Requirements and Conditions e. Contract Specifications
f. Contract Plans
g. General Condition
h. Special Conditions
i. Standard Specification for Public Works, most current edition

2. The Contract Documents are complementary, and that which is required by one shall be as binding as if required by all.

3. Contractor shall provide and furnish all labor, materials, necessary tools, expendable equipment, and all utility and transportation services required for the following work of improvement: The FY 2024-25 Water Valve Replacement project will replace water valves, water valve clusters, and associated appurtenances throughout the City ranging from 4 inches to 10 inches in diameter.

4. Contractor agrees to perform all the said work and furnish all the said materials at their own cost and expense that are necessary to construct and complete in strict conformance with Contract Documents and to the satisfaction of the City Engineer, the work hereinafter set forth in accordance with the Contract adopted by the City Council.
4 of 12
1 ATTACHMENT A
June 17, 2025, Item #5

5. City agrees to pay and Contractor agrees to accept in full payment for performance of this work of improvement as described, the stipulated sum of $360,500.00 the "Contract Price."
City agrees to make progress payments and final payment in accordance with the method set forth in the Special Provisions.

6. Contractor agrees to commence construction of the work provided for herein within Fifteen (15) Calendar Days after the date specified in the Notice to Proceed, and to continue diligently in strict conformance with Contract Documents and without interruption, and to complete the construction thereof within 40 Working Days after the date specified in the Notice to Proceed.

7. Time is of the essence of this Contract, and it is agreed that it would be impracticable or extremely difficult to ascertain the extent of actual loss or damage which the City will sustain by reason of any delay in the performance of this Contract. It is, therefore, agreed that Contractor will pay as liquidated damages to the City the following sum of $500.00 per Calendar Day, for each and every Calendar Days delay in finishing the Work in excess of the number of Working Days prescribed above. If liquidated damages are not paid, as assessed by the City, the City may deduct the amount thereof from any money due or that may become due the Contractor under this Contract in addition to any other remedy available to City.

By executing this Contract, Contractor agrees that the amount of liquidated damages is reasonable and shall not constitute a penalty.

8. In accordance with State of California Senate Bill No. 854, Contractor will maintain and will require all subcontractors to maintain valid and current Department of Industrial Relations (DIR) Public Works Contractor registration during the term of this project. Contractor shall notify the City in writing immediately, and in no case more than twenty-four (24) hours, after receiving any information that Contractor's or any of its Subcontractor's DIR registration status has been suspended, revoked, expired, or otherwise changed.

9. Contractor will pay, and will require all subcontractors to pay, all employees on said Contract a salary or wage at least equal to the prevailing salary or wage established for such work as set forth in the wage determinations and wage standards applicable to this work, a copy of which is on file in the office of the City Clerk of the City of Poway. Federal prevailing wage rates apply for federally funded projects.

Travel and subsistence pay shall be paid in accordance with Labor Code§ 1773.1.

10. Contractor shall be subject to the penalties in accordance with Labor Code of § 1775 for each worker paid (either by Contractor or by any subcontractors under Contractor) less than the prevailing rate described above on the work provided for in this Contract.

11. Contractor and subcontractors shall comply with Labor Code § 1810 and § 1811 which stipulates that eight hours labor constitutes a legal day's work, and§ 1812 which stipulates that the Contractor and subcontractors shall keep an accurate record showing the name of and actual hours worked each calendar day and each 2 5 of 12
June 17, 2025, Item #5
calendar week by each worker employed by them in connection with the work performed under the terms of the Contract. Failure to comply with these sections of the Labor Code will subject the Contractor to penalty and forfeiture provisions of the Labor Code§ 1813.

12. Contractor will comply with the provisions of Labor Code§ 1777.5 pertaining to the employment of apprentices to the extent applicable to this Contract.

13. Contractor, by executing this Contract, hereby certifies:
"I am aware of and will comply with the Labor Code § 3700 by securing payment for and maintaining in full force and effect for the duration of the contract, complete Workers' Compensation Insurance, and shall furnish a Certificate of Insurance to the City before execution of the Contract. The City, its officers, or employees, will not be responsible for any claims in law or equity occasioned by failure of the Contractor to comply with this paragraph."
Contractor further agrees to require all subcontractors to carry Workers' Compensation Insurance as required by the Labor Code of the State of California.

14. Contractor shall, concurrent with the execution of this Contract, furnish two bonds approved by the City, one in the amount of One Hundred Percent (100%) of the Contract Price, to guarantee the faithful performance of the work ("Performance Bond"), and one in the amount of One Hundred Percent (100%) of the Contract Price to guarantee payment of all claims for labor and materials furnished ("Payment Bond"). This Contract shall not become effective until such bonds are supplied to and approved by the City.

15. a. Contractor shall procure and maintain at its own expense, until completion of 6 of 12
performance, commercial general liability insurance of not less than One Million Dollars ($1,000,000) combined single limit per occurrence, and Two Million Dollars ($2,000,000) in the aggregate, for bodily injury, personal injury, death, loss or damage resulting from the wrongful or negligent acts by the Contractor or its officers, employees, servants, volunteers and agents and independent contractors.

Contractor shall provide insurance on an occurrence, not claims-made basis.

Contractor acknowledges and agrees that, for purposes of clarification with the intention of avoiding gaps in coverage with any umbrella Qr excess insurance, personal and advertising injury coverage shall be triggered by an "offense" while bodily injury and property damage coverage shall be triggered by an "occurrence" during the policy period.
b. Contractor shall further procure and maintain at its own expense, until completion of performance, commercial vehicle liability insurance covering personal injury and property damage, of not less than One Million Dollars ($1,000,000) combined single limit per occurrence, and Two Million Dollars ($2,000,000) in the aggregate, covering any vehicle utilized by Contractor or its officers, employees, 3 June 17, 2025, Item #5
7 of 12
servants, volunteers and agents and independent contractors in performing the services required by this Agreement.
c. Contractor shall further procure and maintain at its expense, until completion of performance, workers' compensation insurance providing coverage as required by the California State Workers' Compensation Law. If any class of employees employed by the Contractor pursuant to this Agreement is not protected by the California State Workers' Compensation Law, Contractor shall provide adequate insurance for the protection of such employees to the satisfaction of the City. This provision shall not apply if Contractor has no employees performing work under this Agreement. Contractor agrees to waive its statutory immunity under any worker's compensation or similar statute, as respecting the City, and to require any and all subcontractors and any other person or entity involved with the Project to do the same.

Worker's Compensation Insurance:
o Contractor has no employees and is exempt from workers' compensation requirements.
o Contractor carries workers' compensation insurance for all employees. d. All policies required by this section shall be secured from insurers authorized to do business in the State of California with an "A" policyholder's rating or better and a financial rating of at least Class VII, in accordance with the current Best's Ratings.
e. Contractor agrees to require that all parties, including but not limited to subcontractors, architects, engineers or others with whom Contractor enters into contracts or whom Contractor hires or retains pursuant to or in any way related to the performance of this Agreement, provide the insurance coverage required herein, at minimum, and, except for worker's compensation coverage, name as additional insureds the parties to this Agreement. Contractor agrees to monitor and review all such coverage and assumes all responsibility for ensuring that such coverage is provided in conformity with the requirements of this Section. f. In the event this Agreement is terminated for any reason prior to the completion of all obligations and requirements of this Agreement, Contractor agrees to maintain all coverages required herein until the City provides written authorization to terminate the coverages following the City's review and determination that all liability posed under this Agreement as to the party providing insurance has been eliminated.
g. Contractor agrees and acknowledges that if it fails to obtain all of the insurance required in this Agreement in accordance with the requirements herein, or to obtain and ensure that the coverage required herein is maintained by any subcontractors or others involved in any way with the Project, Contractor shall be responsible for any losses, claims, suits, damages, defense obligations, or liability of any kind or nature attributable to the City, and/or its officers, employees, servants, 4 June 17, 2025, Item #5
volunteers, agents and independent contractors, that result from such failure by Contractor.

16. a. Contractor shall provide certificates of insurance with original endorsements to the City as evidence of the insurance coverage required herein. Certificates of such insurance shall be filed with the City on or before commencement of performance of this Agreement. Current certification of insurance shall be kept on file with the City at all times until completion of performance and acceptance by the City.
b. Notwithstanding any inconsistent statement in any required insurance policies or any subsequent endorsements attached thereto, the commercial general liability and commercial vehicle liability policies shall bear endorsements whereby it is provided that the City, and its officers, employees, servants, volunteers, agents and independent contractors are named as additional insureds. Additional insureds shall be entitled to the full benefit of all insurance policies in the same manner and to the same extent as any other insureds and there shall be no limitation to the benefits conferred upon them other than policy limits to coverages. c. Contractor shall require the carriers of all required insurance policies to waive all rights of subrogation against the City, and its officers, employees, servants, volunteers, agents and independent contractors.
d. Each policy required herein must be endorsed to provide that the policy shall not be canceiied in coverage or limits (except by paid claims) unless the insurer has provided the City with 30 days prior written notice of cancellation. Contractor agrees to provide the City with 30 days written notice prior to any non-renewal or reduction in coverage or limits.
e. All insurance policies required to be provided by Contractor or any other party must be endorsed to provide that the policies shall apply on a primary and noncontributing basis in relation to any insurance or self-insurance, primary or excess, maintained or available to the City, and its officers, employees, servants, volunteers, agents and independent contractors.

17. a. Contractor shall defend, indemnify and hold harmless the City, its officers, 8 of 12
officials, agents, employees and volunteers from and against any and all claims, demands, actions, losses, damage, injuries, and liability, direct or indirect (including any and all costs and expenses in connection therewith) to the extent actually caused by the negligence of Contractor, Contractor's employees, subcontractors or independent contractors except for any such claim arising out of the negligence or willful misconduct of the City, or its officers, agents, employees or volunteers. b. The City does not, and shall not, waive any rights that it may have against Contractor under this Section because of the acceptance by the City, or the deposit with the City, of any insurance policy or certificate required pursuant to this Agreement. The hold harmless, indemnification and duty to defend provisions of this Section shall apply regardless of whether or not said insurance policies are 5 June 17, 2025, Item #5
determined to be applicable to the claim, demand, action, damage, liability, loss, cost or expense described herein.

18. Any amendments to any of the Contract Documents, including but not limited to Contract Change Orders, must be in writing executed by the Contractor and the City. Any time an approval, time extension, or consent of the City is required under the Contract Documents, such approval, extension, or consent must be in writing in order to be effective.

19. The Contract Documents contain all of the agreements and understandings of the parties and all previous understandings, negotiations, and contracts are integrated into and superseded by this Contract.

20. In the event that any one or more of the phrases, sentences, clauses, paragraphs, or sections contained in this Contract shall be declared invalid or unenforceable by a valid judgment or decree of a court of competent jurisdiction, such invalidity or unenforceability shall not affect any of the remaining phrases, sentences, clauses, paragraphs, or sections of this Contract which are hereby declared as severable and shall be interpreted to carry out the intent of the parties hereunder.

21. The persons executing this Contract on behalf of the parties hereto warrant that they are duly authorized to execute this Contract on behalf of said parties and that, by so executing this Contract, the parties hereto are formally bound to the provisions of this Contract.

22. This Contract shall be binding upon and shall inure to the benefit of the parties hereto and their respective heirs, personal representatives, successors, and assigns.

23. In performing its obligations and duties under this Contract, each party shall comply with all applicable local, state, and federal laws, regulations, rules, standards and ordinances.

24. This Contract may be executed by the parties in counterparts, which counterparts shall be construed together and have the same effect as if all of the parties had executed the same instrument.

25. After completion of the work contemplated by this Contract, Contractor shall file with the City Manager an affidavit stating that all workers and persons employed, all firms supplying materials, and all subcontractors upon the project have been paid in full, and that there are no claims outstanding against the project for either labor or materials, except certain items, if any, to be set forth in an affidavit covering disputed claims or items in connection with a Stop Notice that has been filed under the provision of the laws of the State of California.

26. All work shall be subject to inspection and testing by City and its authorized representatives during manufacture and construction and all other times and places, including, without limitation, the plans of Contractor and any of its suppliers.

Contractor shall provide all reasonable facilities and assistance for the safety and convenience of inspectors. All inspections and tests shall be performed in such 6 9 of 12
June 17, 2025, Item #5
manner as to not unduly delay the work. The Work shall be subject to final inspection and acceptance notwithstanding any payments or other prior inspections.

Such final inspection shall be made within a reasonable time after completion of the work.

27. Whenever Contractor has knowledge that any actual or potential labor dispute is delaying or threatens to delay the timely performance of the Contract, Contractor shall immediately give notice thereof, including all relevant information with respect thereto, to City.

28. Contractor agrees to contact the appropriate regional notification center in accordance with Government Code Section 4216.2.

29. Contractor shall submit its detailed plan for worker protection during the excavation of trenches required by the scope of the work in accordance with Labor Code Section 6705.

30. a. Contractor shall, without disturbing the condition, notify City, in writing, as 10 of 12
soon as Contractor, or any of Contractor's subcontractors , agents, or employees have knowledge and reporting is possible, of the discovery of any of the following conditions:
i. The presence of any material that Contractor believes is hazardous waste, as defined in Section 25117 of the Health and Safety Code;
ii. Subsurface or latent physical conditions at the site differing from those indicated in the specifications; or
iii. Unknown physical conditions at the site of any unusual nature, different materially for those ordinarily encountered and generally recognized as inherent in work of the character provided for in this Contract.
b. 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. c. City shall promptly investigate the reported conditions. If City, through 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 Contractor's cost of, or time required for, performance of any part of the work, then City shall issue a change order.
d. 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 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 that pertain to the resolution of disputes and protests between the parties.
7 June 17, 2025, Item #5

31. This Contract is to be governed by the laws of the State of California.

32. All work shall be guaranteed for a period of one ( 1) year from the date of acceptance by the City. Contractor shall promptly make all needed repairs arising out of defective materials, workmanship, and equipment.

City is hereby authorized to make such repairs if within ten (10) days after giving written notice to Contractor, or its agent, Contractor should fail to make or undertake with due diligence the aforesaid repairs; provided, however, that in case of an emergency, where, in the opinion of City, delay would cause serious loss or damage, repairs may be made without notice being sent to Contractor, and Contractor shall pay the costs thereof. (Remainder of page intentionally left blank)
8 11 of 12
June 17, 2025, Item #5
IN WITNESS WHEREOF, the said Contractor and the City Manager, City Clerk and City Attorney have caused the names of said parties to be affixed hereto, the day and year first above written.

Contractor's Name:

M-Rae Engineering, Inc.

Print Name of Construction Company
By:

Signature
Joel Constance
Print Name
Contractor information :

Address for Notices and Payments
9865 Meadow Lane,
Descanso, CA 91916
Telephone Number: 619-843-5493
Email: [email protected]
ATTEST:

Carrie Gallagher, CMC, City Clerk
APPROVED AS TO FORM:

RUTAN & TUCKER, LLP
Alan Fenstermacher, City Attorney
12 of 12

CITY OF POWAY
a Municipal Corporation
Chris Hazeltine, City Manager
9 June 17, 2025, Item #6
DATE:

TO:

FROM:

CONTACT:

SUBJECT:

Summary:

AGENDA REPORT CityofPoway
June 17, 2025
Honorable Mayor and Members of the City Council
Julie Procopio, Director of Development Services(£f
Miguel Solano, Assistant Engineer
(858) 668-4653 or [email protected]

CITY COUNCIL
Award of Contract to Vullutini Corporation DBA Royal Electric Company for the Water Pump Station 8 (PS-8) Motor Control Center (MCC) Upgrades Project, Bid No. 25-008 and Determination the Project is Categorically Exempt from the California Environmental Quality Act (CEQA)
This action will award a construction contract to Vullutini Corporation DBA Royal Electric Company (Royal Electric Company) for the Water Pump Station PS-8 MCC Upgrades project. This project involves electrical and control system upgrades at PS-8.

Recommended Action:

It is recommended the City Council:
1) Award the contract for the Water Pump Station PS-8 MCC Upgrades project to Royal Electric Company, in the amount of $591,350.00 and authorize the City Manager to execute the contract (Attachment A);
2) Declare the bid submitted by National Electric Works, Inc., non-responsive due to failure to acknowledge receipt of bid addenda;
3) Appropriate additional funds in the amount of $119,458.64 from the Water Enterprise Fund (Fund 5100) for construction of the Water Pump Station PS-8 MCC Upgrades project (WT041); and 4) Make a determination the project is Categorically Exempt from the California Environmental Quality Act (CEQA).

Discussion:

The Water Pump Station PS-8 MCC Upgrades project includes important electrical and control system improvements necessary to maintain reliable water service and ensure continued operation of critical infrastructure. MCCs are essential components that power and control pump station equipment. The existing MCC at PS-8 is nearing the end of its service life with aging parts and outdated technology that no longer meet current operational standards and are incompatible with modern equipment.

Work includes the removal and replacement of the main service switchboard, motor control center, distribution panel and transformer. These components distribute power, operate the pumps, regulate voltage and support the overall electrical function of the station. Additional improvements include 1 of 12
June 17, 2025, Item #6
conduit installation and input/output (1/0) wInng, replacement of pump control switches and instrumentation, reuse of existing underground pathways and protection of adjacent facilities throughout construction. The project also includes budgeting for construction support services which provide technical assistance to City staff during construction. These services typically include review of submittals, responses to RFls (requests for information) and support with field coordination and final documentation to help ensure the work is completed in accordance with the approved plans and specifications.

To ensure uninterrupted water delivery and emergency response capabilities, pump station operations will be maintained throughout construction. Construction schedule and timing limitations will be implemented as necessary in response to seasonal fire threat levels, including measures to maintain minimum pump availability and adjust operations accordingly if the emergency pump is temporarily taken out of service.

Bids were opened on April 16, 2025. A total of four bids were received for the construction contract, ranging as follows:

Company Total Bid Amount
National Electric Works, Inc. $483,525.00
Vullutini Corporation DBA Royal Electric Company $591,350.00 Southern Contracting Company $595,000.00
Pacific Power Engineering Technology Inc. $629,000.00
The apparent low bid of $483,525.00, submitted by National Electric Works, Inc., has been determined to be non-responsive. The contractor did not acknowledge three addenda, each of which contained important project information necessary for a complete and compliant bid. This omission could not be waived as a minor irregularity. Additionally, when staff followed up to clarify the significantly lower bid amount, the contractor indicated their pricing was based on alternate equipment not listed in the specifications which does not meet the operational needs. The next apparent low bid of $591,350.00, submitted by Royal Electric Company is responsive to and meets the requirements of the bid specifications. The contract time for this project is 100 working days with an engineer's estimate of $485,074.00.

Environmental Review:

The proposed project is Categorically Exempt from CEQA as a Class 1 Categorical Exemption, pursuant to Section 15301 (c) of the CEQA Guidelines, in that the project involves minor alteration to existing public facilities.

Fiscal Impact:

Funds totaling $547,398.36 are available in the Water Pump Station PS-8 MCC Upgrades (WT041) project funded by the Water Enterprise Fund 5100. With the recommended appropriation in the amount of $119,458.64 from the Water Enterprise Fund 5100 reserves included in this report, there will be sufficient funds in the project account to cover the construction costs of the project. The budget of $666,857.00 will include the cost for construction support services, the construction contract and a 10% construction contingency allowance. The City proactively plans for key water infrastructure repair and replacement projects as part of the annual budget process. 2 of 12
June 17, 2025, Item #6
Public Notification:

None.

Attachments:

A. Construction Contract
Reviewed/Approved By:

Assistant City Manager
3 of 12
Reviewed By:

Alan Fenstermacher
City Attorney
Chris Hazeltine
City Manager
June 17, 2025, Item #6

SECTION
8 CONSTRUCTION

CONTRACT
CITY
OF
POWAY
Water
Pump
Station
PS-8
MCC
Upgrades
This
Contract
made
and
entered
into
this
18th
day
of
June
2025,
by
and
between
City
of
Poway,
a
municipal
corporation
of
the
State
of
California,
hereinafter
referred
to
as
"City"
and
Vullutini
Corporation
OBA
Royal
Electric
Company
hereinafter
referred
to
as
"Contractor." The
City
and
the
Contractor,
for
the
consideration
hereinafter
named,
mutually
agree
as
follows: 1.

The
complete
Contract
includes
all
of
the
Contract
Documents,
which
are
incorporated
herein
by
this
reference,
and
include:
a.

This
Contract
b.

Contract
Addenda
c.

Contract
Change
Orders
d.

Instructions
to
Bidders,
Proposal
Requirements
and
Conditions
e.

Contract
Specifications
f.

Contract
Plans
g.

General
Condition
h.

Special
Conditions
i.

Standard
Specification
for
Public
Works,
most
current
edition

2. The
Contract
Documents
are
complementary,
and
that
which
is
required
by
one
shall
be
as
binding
as
if required
by
all.

3. Contractor
shall
provide
and
furnish
all
labor,
materials,
necessary
tools,
expendable
equipment,
and
all
utility
and
transportation
services
required
for
the
following
work
of
improvement:

The
scope
of
work
for
this
project
consists
of,
but
is
not
necessarily
limited
to
the
following:
•
Removal
and
replacement
of
the
main
service
switchboard
and
motor
control
center
on
existing
housekeeping
pads.
•
Removal
and
replacement
of
panel
'A'
and
transformer
'T-1
'.
•
Furnishing
of
new
conduit
and
1/0
wiring
between
the
new
motor
control
center
and
the
existing
remote
terminal
unit.
4 of
12 1

ATTACHMENT
A
June 17, 2025, Item #6
•
Removal
and
replacement
of
the
position
, pressure,
and
solenoid
control
switch,
along
with
associated
1/0
wiring
, at
each
existing
pump.
•
Removal
and
replacement
of
the
surge
tank
level
sensor
and
pressure
transmitter.
•
Removal
and
replacement
of
pump
feeders.
•
Reuse
existing
underground
pathways
for
new
conductors.
•
Protection
of
all
existing
work,
buildings,
piping
, equipment,
utilities,
etc
. adjacent
to
the
Work.

Work
at
this
pump
station
shall
occur
during
low
fire
threat
days
and
shall
consider
the
following: During
winter
months
(October
1 to
March
31 ):
•
Maximum non-pumping
time
is
three
(3)
days,
with
one
pump
available
at
all
times
for
fire
and
main
break
flows.
•
Maximum
time
without
an
emergency
pump
is
four
(4)
hours
during
regular
business
hours
.

During
summer
months
(April
1 to
September
30):
•
Maximum non-pumping
time
is
two
(2)
days,
with
two
pumps
available
at
all
times
for
fire
and
main
break
flows
.
•
Maximum
time
without
an
emergency
pump
is
four
(4)
hours
during
regular
bus
iness
hours.

4. Contractor
agrees
to
perform
all
the
said
work
and
furnish
all
the
said
materials
at
their
own
cost
and
expense
that
are
necessary
to
construct
and
complete
in
strict
conformance
with
Contract
Documents
and
to
the
satisfaction
of
the
City
Engineer,
the
work
hereinafter
set
forth
in
accordance
with
the
Contract
adopted
by
the
City
Council.

5. City
agrees
to
pay
and
Contractor
agrees
to
accept
in
full
payment
for
performance
of
this
work
of
improvement
as
described,
the
stipulated
sum
of
$591,350.00
the
"Contract
Price."
City
agrees
to
make
progress
payments
and
final
payment
in
accordance
with
the
method
set
forth
in
the
Special
Provisions
.

6. Contractor
agrees
to
commence
construction
of
the
work
provided
for
herein
within
Fifteen
(15)
Calendar
Days
after
the
date
specified
in
the
Notice
to
Proceed,
and
to
continue
diligently
in
strict
conformance
with
Contract
Documents
and
without
interruption,
and
to
complete
the
construction
thereof
within
100
Working
Days
after
the
date
specified
in
the
Notice
to
Proceed.

7. Time
is
of
the
essence
of
this
Contract,
and
it
is
agreed
that
it
would
be
impracticable
or
extremely
difficult
to
ascertain
the
extent
of
actual
loss
or
damage
which
the
City
will
sustain
by
reason
of
any
delay
in
the
performance
of
this
Contract.

It
is,
therefore
, agreed
that
Contractor
will
pay
as
liquidated
damages
to
the
City
the
following
sum
of
$500.00
per
Calendar
Day,
for
each
and
every
Calendar
Days
delay
in
finishing
the
Work
in
excess
of
the
number
of
Working
Days
2 5
of
12 June 17, 2025, Item #6
prescribed
above
. If liquidated
damages
are
not
paid,
as
assessed
by
the
City,
the
City
may
deduct
the
amount
thereof
from
any
money
due
or
that
may
become
due
the
Contractor
under
this
Contract
in
addition
to
any
other
remedy
available
to
City.

By
executing
this
Contract,
Contractor
agrees
that
the
amount
of
liquidated
damages
is
reasonable
and
shall
not
constitute
a
penalty.

8. In
accordance
with
State
of
California
Senate
Bill
No.
854,
Contractor
will
maintain
and
will
require
all
subcontractors
to
maintain
valid
and
current
Department
of
Industrial
Relations
(DIR)
Public
Works
Contractor
registration
during
the
term
of
this
project.

Contractor
shall
notify
the
City
in
writing
immediately,
and
in
no
case
more
than
twenty-four
(24)
hours,
after
receiving
any
information
that
Contractor's
or
any
of
its
Subcontractor's
DIR
registration
status
has
been
suspended,
revoked,
expired,
or
otherwise
changed.

9. Contractor
will
pay,
and
will
require
all
subcontractors
to
pay,
all
employees
on
said
Contract
a salary
or
wage
at
least
equal
to
the
prevailing
salary
or
wage
established
for
such
work
as
set
forth
in
the
wage
determinations
and
wage
standards
applicable
to
this
work,
a
copy
of
which
is
on
file
in
the
office
of
the
City
Clerk
of
the
City
of
Poway
.

Federal
prevailing
wage
rates
apply
for
federally
funded
projects.

Travel
and
subsistence
pay
shall
be
paid
in
accordance
with
Labor
Code§
1773.1.

10. Contractor
shall
be
subject
to
the
penalties
in
accordance
with
Labor
Code
of
§
1775
for
each
worker
paid
(either
by
Contractor
or
by
any
subcontractors
under
Contractor)
less
than
the
prevailing
rate
described
above
on
the
work
provided
for
in
this
Contract.

11. Contractor
and
subcontractors
shall
comply
with
Labor
Code
§
1810
and
§
1811
which
stipulates
that
eight
hours
labor
constitutes
a
legal
day's
work,
and
§
1812
which
stipulates
that
the
Contractor
and
subcontractors
shall
keep
an
accurate
record
showing
the
name
of
and
actual
hours
worked
each
calendar
day
and
each
calendar
week
by
each
worker
employed
by
them
in
connection
with
the
work
performed
under
the
terms
of
the
Contract.

Failure
to
comply
with
these
sections
of
the
Labor
Code
will
subject
the
Contractor
to
penalty
and
forfeiture
provisions
of
the
Labor
Code§
1813.

12. Contractor
will
comply
with
the
provisions
of
Labor
Code§
1777
.5
pertaining
to
the
employment
of
apprentices
to
the
extent
applicable
to
this
Contract.

13. Contractor,
by
executing
this
Contract,
hereby
certifies:
6 of
12 "I
am
aware
of
and
will
comply
with
the
Labor
Code
§
3700
by
securing
payment
for
and
maintaining
in
full
force
and
effect
for
the
duration
of
the
contract,
complete
Workers'
Compensation
Insurance,
and
shall
furnish
a
Certificate
of
Insurance
to
the
City
before
execution
of
the
Contract.

The
City,
its
officers,
or
employees,
will
not
be
responsible
for
any
claims
in
law
or
equity
occasioned
by
failure
of
the
Contractor
to
comply
with
this
paragraph."
3 June 17, 2025, Item #6
Contractor
further
agrees
to
require
all
subcontractors
to
carry
Workers'
Compensation
Insurance
as
required
by
the
Labor
Code
of
the
State
of
California.

14. Contractor
shall,
concurrent
with
the
execution
of
this
Contract,
furnish
two
bonds
approved
by
the
City,
one
in
the
amount
of
One
Hundred
Percent
(100%)
of
the
Contract
Price,
to
guarantee
the
faithful
performance
of
the
work
("Performance
Bond"),
and
one
in
the
amount
of
One
Hundred
Percent
(100%)
of
the
Contract
Price to
guarantee
payment
of
all
claims
for
labor
and
materials
furnished
("Payment
Bond").

This
Contract
shall
not
become
effective
until
such
bonds
are
supplied
to
and
approved
by
the
City.

15. a.

Contractor
shall
procure
and
maintain
at
its
own
expense,
until
completion
of
7 of
12 performance,
commercial
general
liability
insurance
of
not
less
than
One
Million
Dollars
($1,000,000)
combined
single
limit
per
occurrence,
and
Two
Million
Dollars
($2,000,000)
in
the
aggregate,
for
bodily
injury,
personal
injury,
death,
loss
or
damage
resulting
from
the
wrongful
or
negligent
acts
by
the
Contractor
or
its
officers,
employees,
servants,
volunteers
and
agents
and
independent
contractors.

Contractor
shall
provide
insurance
on
an
occurrence,
not
claims-made
basis.

Contractor
acknowledges
and
agrees
that,
for
purposes
of
clarification
with
the
intention
of
avoiding
gaps
in
coverage
with
any
umbrella
or
excess
insurance,
personal
and
advertising
injury
coverage
shall
be
triggered
by
an
"offense"
while
bodily
injury
and
property
damage
coverage
shall
be
triggered
by
an
"occurrence"
during
the
policy
period.
b.

Contractor
shall
further
procure
and
maintain
at
its own
expense,
until
completion
of
performance,
commercial
vehicle
liability
insurance
covering
personal
injury
and
property
damage,
of
not
less
than
One
Million
Dollars
($1,000,000)
combined
single
limit
per
occurrence,
and
Two
Million
Dollars
($2,000,000)
in
the
aggregate,
covering
any
vehicle
utilized
by
Contractor or
its
officers,
employees,
servants,
volunteers
and
agents
and
independent
contractors
in
performing
the
services
required
by
this
Agreement.
c.

Contractor
shall
further
procure
and
maintain
at
its
expense,
until
completion
of
performance, workers'
compensation
insurance
providing
coverage
as
required
by
the
California
State
Workers'
Compensation
Law.

If
any
class
of
employees
employed
by
the
Contractor
pursuant
to
this
Agreement
is
not
protected
by
the
California
State
Workers'
Compensation
Law,
Contractor
shall
provide
adequate
insurance
for
the
protection
of
such
employees
to
the
satisfaction
of
the
City.

This
provision
shall
not
apply
if Contractor
has
no
employees
performing
work
under
this
Agreement.

Contractor
agrees
to
waive
its
statutory
immunity
under
any
worker's
compensation
or
similar
statute,
as
respecting
the
City,
and
to
require
any
and
all
subcontractors
and
any
other
person
or
entity
involved
with
the
Project
to
do
the
same. Worker's
Compensation
Insurance:
o
Contractor
has
no
employees
and
is
exempt
from
workers'
compensation
requirements.
o
Contractor
carries
workers'
compensation
insurance
for
all
employees.
4 June 17, 2025, Item #6
d.

All
policies
required
by
this
section
shall
be
secured
from
insurers
authorized
to
do
business
in
the
State
of
California
with
an
"A"
policyholder's
rating
or
better
and
a
financial
rating
of
at
least
Class
VII,
in
accordance
with
the
current
Best's
Ratings. e.

Contractor
agrees
to
require
that
all
parties,
including
but
not
limited
to
subcontractors,
architects,
engineers
or
others
with
whom
Contractor
enters
into
contracts
or
whom
Contractor
hires
or
retains
pursuant
to
or
in
any
way
related
to
the
performance
of
this
Agreement,
provide
the
insurance
coverage
required
herein,
at
minimum,
and,
except
for
worker's
compensation
coverage,
name
as
additional
insureds
the
parties
to
this
Agreement.

Contractor
agrees
to
monitor
and
review
all
such
coverage
and
assumes
all
responsibility
for
ensuring
that
such
coverage
is
provided
in
conformity
with
the
requirements
of
this
Section.
f.

In
the
event
this
Agreement
is
terminated
for
any
reason
prior
to
the
completion
of
all
obligations
and
requirements
of
this
Agreement,
Contractor
agrees
to
maintain
all
coverages
required
herein
until
the
City
provides
written
authorization
to
terminate
the
coverages
following
the
City's
review
and
determination
that
all
liability
posed
under
this
Agreement
as
to
the
party
providing
insurance
has
been
eliminated. g.

Contractor
agrees
and
acknowledges
that
if
it
fails
to
obtain
all
of
the
insurance
required
in
this
Agreement
in
accordance
with
the
requirements
herein,
or
to
obtain
and
ensure
that
the
coverage
required
herein
is
maintained
by
any
subcontractors
or
others
involved
in
any
way
with
the
Project,
Contractor
shall
be
responsible
for
any
losses,
claims,
suits,
damages,
defense
obligations,
or
liability
of
any
kind
or
nature
attributable
to
the
City,
and/or
its
officers,
employees,
servants,
volunteers,
agents
and
independent
contractors,
that
result
from
such
failure
by
Contractor.

16. a.

Contractor
shall
provide
certificates
of
insurance
with
original
endorsements
8 of
12 to
the
City
as
evidence
of
the
insurance
coverage
required
herein.

Certificates
of
such
insurance
shall
be
filed
with
the
City
on
or
before
commencement
of
performance
of
this
Agreement.

Current
certification
of
insurance
shall
be
kept
on
file
with
the
City
at
all
times
until
completion
of
performance
and
acceptance
by
the
City. b.

Notwithstanding
any
inconsistent
statement
in
any
required
insurance
policies
or
any
subsequent
endorsements
attached
thereto,
the
commercial
general
liability
and
commercial
vehicle
liability
policies
shall
bear
endorsements
whereby
it
is
provided
that
the
City,
and
its
officers,
employees,
servants,
volunteers,
agents
and
independent
contractors
are
named
as
additional
insureds.

Additional
insureds
shall
be
entitled
to
the
full
benefit
of
all
insurance
policies
in
the
same
manner
and
to
the
same
extent
as
any
other
insureds
and
there
shall
be
no
limitation
to
the
benefits
conferred
upon
them
other
than
policy
limits
to
coverages.
5 June 17, 2025, Item #6
c.

Contractor
shall
require
the
carriers
of
all
required
insurance
policies
to
waive
all
rights
of
subrogation
against
the
City,
and
its
officers,
employees,
servants,
volunteers,
agents
and
independent
contractors.
d.

Each
policy
required
herein
must
be
endorsed
to
provide
that
the
policy
shall
not
be
cancelled
in
coverage
or
limits
(except
by paid
claims)
unless
the
insurer
has
provided
the
City
with
30 days
prior
written
notice
of
cancellation.

Contractor
agrees
to
provide
the
City
with
30 days
written
notice
prior
to
any
non-renewal
or
reduction
in
coverage
or
limits.
e.

All
insurance
policies
required
to
be
provided
by
Contractor
or
any
other
party
must
be
endorsed
to
provide
that the
policies
shall
apply
on
a
primary
and
noncontributing
basis
in
relation
to
any
insurance
or
self-insurance,
primary
or
excess,
maintained
or
available
to
the
City,
and
its
officers,
employees,
servants,
volunteers,
agents
and
independent
contractors.

17. a.

Contractor
shall
defend,
indemnify
and
hold
harmless
the
City,
its
officers
,
officials,
agents,
employees
and
volunteers
from
and
against
any
and
all
claims,
demands,
actions,
losses,
damage,
injuries,
and
liability,
direct
or
indirect
(including
any
and
all
costs
and
expenses
in
connection
therewith)
to
the
extent
actually
caused
by
the
negligence
of
Contractor,
Contractor's
employees,
subcontractors
or
independent
contractors
except
for
any
such
claim
arising
out
of
the
negligence
or
willful
misconduct
of
the
City,
or
its
officers,
agents,
employees
or
volunteers.
b.

The
City
does
not,
and
shall
not,
waive
any
rights
that
it
may
have
against
Contractor
under
this
Section
because
of
the
acceptance
by
the
City,
or
the
deposit
with
the
City,
of
any
insurance
policy
or
certificate
required
pursuant
to
this
Agreement.

The
hold
harmless,
indemnification
and
duty
to
defend
provisions
of
this
Section
shall
apply
regardless
of
whether
or
not
said
insurance
policies
are
determined
to
be
applicable
to
the
claim,
demand,
action,
damage,
liability,
loss,
cost
or
expense
described
herein.

18. Any
amendments
to
any
of
the
Contract
Documents,
including
but
not
limited
to
Contract
Change
Orders,
must
be
in
writing
executed
by
the
Contractor
and
the
City
. Any
time
an
approval,
time
extension
, or
consent
of
the
City
is
required
under
the
Contract
Documents,
such
approval,
extension,
or
consent
must
be
in
writing
in
order
to
be
effective.

19. The
Contract
Documents
contain
all
of
the
agreements
and
understandings
of
the
parties
and
all
previous
understandings,
negotiations,
and
contracts
are
integrated
into
and
superseded
by
this
Contract.

20. In
the
event
that
any
one
or more
of
the
phrases,
sentences,
clauses,
paragraphs,
or
sections
contained
in
this
Contract
shall
be
declared
invalid
or
unenforceable
by
a
valid
judgment
or
decree
of
a
court
of
competent
jurisdiction,
such
invalidity
or
unenforceability
shall
not affect
any
of
the
remaining
phrases,
sentences,
clauses,
paragraphs,
or
sections
of
this
Contract
which
are
hereby
declared
as
severable
and
shall
be
interpreted
to
carry
out
the
intent
of
the
parties
hereunder
.
6 9
of
12 June 17, 2025, Item #6

21. The
persons
executing
this
Contract
on
behalf
of
the
parties hereto
warrant
that
they
are
duly
authorized
to
execute
this
Contract
on
behalf
of
said
parties
and
that,
by
so
executing
this
Contract,
the
parties
hereto
are
formally
bound
to
the
provisions
of
this
Contract.

22. This
Contract
shall
be
binding
upon
and
shall
inure
to
the
benefit
of
the
parties
hereto
and
their
respective
heirs
,
personal
representatives,
successors,
and
assigns.

23. In
performing
its
obligations
and
duties
under
this
Contract
, each
party
shall
comply
with
all
applicable
local
, state,
and
federal
laws,
regulations,
rules,
standards
and
ordinances.

24. This
Contract
may
be
executed
by
the
parties
in
counterparts,
which
counterparts
shall
be
construed
together
and
have
the
same
effect
as
if
all
of
the
parties
had
executed
the
same
instrument.

25. After
completion
of
the
work
contemplated
by
this
Contract,
Contractor
shall
file
with
the
City
Manager
an
affidavit
stating
that
all
workers
and
persons
employed,
all
firms
supplying
materials,
and
all
subcontractors
upon
the
project
have
been
paid
in
full,
and
that
there
are
no
claims
outstanding
against
the
project
for
either
labor
or
materials,
except
certain
items,
if
any,
to
be
set
forth
in
an
affidavit
covering
disputed
claims
or
items
in
connection
with
a
Stop
Notice
that
has
been
filed
under
the
provision
of
the
laws
of
the
State
of
California.

26. All
work
shall
be
subject
to
inspection
and
testing
by
City
and
its
authorized
representatives
during
manufacture
and
construction
and
all
other
times
and
places,
including,
without
limitation,
the
plans
of
Contractor
and
any
of
its
suppliers.

Contractor
shall
provide
all
reasonable
facilities
and
assistance
for
the
safety
and
convenience
of
inspectors.

All
inspections
and
tests
shall
be
performed
in
such
manner
as
to
not
unduly
delay
the
work.

The
Work
shall
be
subject
to
final
inspection
and
acceptance
notwithstanding
any
payments
or
other
prior
inspections.

Such
final
inspection
shall
be
made
within
a
reasonable
time
after
completion
of
the
work.

27. Whenever
Contractor
has
knowledge
that
any
actual
or
potential
labor
dispute
is
delaying
or
threatens
to
delay the
timely
performance
of
the
Contract,
Contractor
shall
immediately
give
notice
thereof,
including
all
relevant
information
with
respect
thereto
, to
City.

28. Contractor
agrees
to
contact
the
appropriate
regional
notification
center
in
accordance
with
Government
Code
Section
4216.2.

29. Contractor
shall
submit
its
detailed
plan
for
worker
protection
during
the
excavation
of
trenches
required
by
the
scope
of
the
work
in
accordance
with
Labor
Code
Section
6705.

30. a.

Contractor
shall,
without
disturbing
the
condition,
notify
City,
in
writing,
as
soon
as
Contractor,
or
any
of
Contractor's
subcontractors,
agents,
or
employees
7 10
of
12 June 17, 2025, Item #6
have
knowledge
and
reporting
is
possible,
of
the
discovery
of
any
of
the
following
conditions:
i.

The
presence
of
any
material
that
Contractor
believes
is
hazardous
waste,
as
defined
in
Section 25117
of
the
Health
and
Safety
Code;
ii.

Subsurface
or
latent
physical
conditions
at
the
site
differing
from
those
indicated
in
the
specifications:
or
iii.

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

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
.
c.

City
shall
promptly
investigate
the
reported
conditions
. If City,
through
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
Contractor's
cost
of,
or
time
required
for,
performance
of
any
part
of
the
work,
then
City
shall
issue
a
change
order
.
d.

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
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
that
pertain
to
the
resolution
of
disputes
and
protests
between
the
parties.
31 .

This
Contract
is
to
be
governed
by
the
laws
of
the
State
of
California.

32. All
work
shall
be
guaranteed
for
a period
of
one
(1)
year
from
the
date
of
acceptance
by
the
City.

Contractor
shall
promptly
make
all
needed
repairs
arising
out
of
defective
materials,
workmanship,
and
equipment.

City
is
hereby
authorized
to
make
such
repairs
if within
ten
(10)
days
after
giving
written
notice
to
Contractor,
or
its
agent,
Contractor
should
fail
to
make
or
undertake
with
due
diligence
the
aforesaid
repairs;
provided,
however,
that
in
case
of
an
emergency,
where,
in
the
opinion
of
City,
delay
would
cause
serious
loss
or
damage,
repairs
may
be
made
without
notice
being
sent
to
Contractor,
and
Contractor
shall
pay
the
costs
thereof
.
(Remainder
of
page
intentionally
left
blank)
8 11
of
12 June 17, 2025, Item #6
IN

WITNESS

WHEREOF,
the
said
Contractor
and
the
City
Manager,
City
Clerk
and
City
Attorney
have
caused
the
names
of
said
parties
to
be
affixed
hereto,
the
day
and
year
first
above
written.

Contractor's
Name:

Vullutini
Corporation
OBA
Royal
Electric
Company
Print
Name
of
Construction
Company
By:

Signature
Dina
Kimble
Print
Name
Contractor
information:

Address
for
Notices
and
Payments
8481
Carbide
Court
Sacramento,
CA
95828
Telephone
Number:
916-226-2100
Email:
[email protected]
ATTEST: Carrie
Gallagher,
CMC,
City
Clerk

APPROVED
AS
TO
FORM
:

RUTAN
&
TUCKER
, LLP
Alan
Fenstermacher,
City
Attorney
12 of
12 CITY
OF
POWAY
a
Municipal
Corporation
Chris
Hazeltine
, City
Manager
9 June 17, 2025, Item #7
DATE:

TO:

FROM:

CONTACT:

SUBJECT:

Summary:

AG EN DA REPORT City of Poway
June 17, 2025
Honorable Mayor and Members of the City Council
Julie Procopio, Director of Development Serviceq
Tracy Beach, City Engineer 113
(858) 668-4652 or [email protected]

CITY COUNCIL
Resolution Adopting a List of Projects for Fiscal Year 2025-26, Funded by Senate Bill 1:

The Road Repair and Accountability Act of 2017
On April 28, 2017, the Governor signed Senate Bill 1 (SB 1 ): the Road Repair and Accountability Act of 2017. The funds generated from this bill are referred to as Road Maintenance and Rehabilitation Account (RMRA) funds and provide funding for basic road maintenance, rehabilitation and critical safety needs on both the state highways and local streets and road systems. Prior to receiving RMRA funds, a list of projects proposed to be funded with these funds must be provided to the California Transportation Commission. All projects proposed to receive funding must be adopted by resolution approved by the City Council. The RMRA funds are proposed to be used on the Fiscal Year (FY) 2025-26 Street Maintenance Project.

Recommended Action:

It is recommended the City Council adopt the Resolution (Attachment A) adopting a list of projects for FY 2025-26 to be funded by SB 1.

Discussion:

A portion of RMRA funds is apportioned annually to cities and counties. Prior to receIvIng an apportionment of RMRA funds from the State Controller in a fiscal year, the bill requires agencies to provide a list of proposed projects to be funded with these funds to the California Transportation Commission. All projects proposed to receive funding must be adopted by resolution approved by the City Council. A city receiving an apportionment of RMRA funds is also required to sustain a maintenance of effort by spending at least the annual average of its general fund expenditures for street, road and highway purposes, averaged over the Fiscal Years 2009-10, 2010-11 and 2011-12.

Based on estimates provided by CaliforniaCityFinance.com, as directed by the California Transportation Commission, the City of Poway is projected to receive approximately $1,292,765 in RMRA funds in FY 2025-26. The attached Resolution identifies the FY 2025-26 Street Maintenance project as the project for which RMRA funds and any carryover funds are to be used. The Resolution also provides specific project details as required by the bill.
1 of 4
June 17, 2025, Item #7
Environmental
Review:

Establishment
of
a
list
of
anticipated
future
capital
improvement
projects
is
not
a
"Project
" as
defined
under
Section
15378
of
the
California
Environmental
Quality
Act
(CEQA)
State
Guidelines;
therefore,
pursuant
to
the
CEQA
State
Guidelines
Section
15060(c)(3)
no
environmental
review
is
required.

Fiscal
Impact:

There
is
no
fiscal
impact
associated
with
approving
this
resolution.

Revenue
estimates
are
provided
by
CaliforniaCityF
inance.com,
as
directed
by
the
California
Transportation
Commission
. The
City
of
Poway
is
projected
to
receive
approximately
$1,292
,765
in
RMRA
funds
in
FY
2025-26.

Appropriation
of
these
funds
will
occur
during
the
adoption
of
the
FY
2025-26
proposed
budget
to
fund
a portion
of
the
FY2025-26
Street
Maintenance
Project
(ST032)
.

Public
Notification:

None
.

Attachments: A.

Resolution
Reviewed/Approved
By:

Assistant
City
Manager
2 of
4 Rev
iewed
By
:

Alan
Fenstermacher
City
Attorney
Chris
Hazeltine
City
Manager
June 17, 2025, Item #7
RESOLUTION NO. 25-

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

POWAY, CALIFORNIA, ADOPTING A LIST OF PROJECTS FOR
FISCAL YEAR 2025-26 FUNDED BY SENATE BILL 1: THE ROAD
REPAIR AND ACCOUNTABILITY ACT OF 2017
WHEREAS, Senate Bill 1 (SB 1 ), the Road Repair and Accountability Act of 2017 (Chapter 5, Statutes of 2017) was passed by the Legislature and signed into law by the Governor in April 2017, to address the significant multi-modal transportation funding shortfalls statewide; WHEREAS, SB 1 includes accountability and transparency provisions that will ensure the residents of the City of Poway (the City) are aware of the projects proposed for funding in our community and which projects have been completed each fiscal year; WHEREAS, the City must adopt by resolution a list of projects proposed to receive fiscal year funding from the Road Maintenance and Rehabilitation Account (RMRA), created by SB 1, which must include a description and the location of each proposed project, a proposed schedule for the project's completion, and the estimated useful life of the improvement; WHEREAS, the City will receive an estimated $1,292,765 in RMRA funding in FY 2025- 26 from SB 1;
WHEREAS, this is the ninth year in which the City is receiving SB 1 funding and will enable the City to continue essential road maintenance and rehabilitation projects, safety improvements, repairing and replacing aging bridges, and increasing access and mobility options for the traveling public that would not have otherwise been possible without SB 1; WHEREAS, the City has undergone a robust public process to ensure public input into our community's transportation priorities/the project list; WHEREAS, the City used a Pavement Management System to develop the SB 1 project list to ensure revenues are being used on the most high-priority and cost-effective projects that also meet the community's priorities for transportation investment; WHEREAS, the funding from SB 1 will help the City maintain and rehabilitate 91 streets totaling approximately 19 centerline miles and approximately 4.8 million square feet of road surface throughout the City this year and many similar projects into the future; WHEREAS, the 2021 California Statewide Local Streets and Roads Needs Assessment found that the City's streets and roads are in a "good" condition with a current PCI (Pavement Condition Index) of 78 and this revenue will help maintain the overall quality of the road system and over the next decade will maintain streets and roads into a "good" condition; and WHEREAS, the SB 1 project list and overall investment in our local streets and roads infrastructure with a focus on basic maintenance and safety, investing in complete streets infrastructure, and using cutting-edge technology, materials and practices, will have significant positive co-benefits statewide.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Poway as follows:
3 of4 ATTACHMENT A
June 17, 2025, Item #7
Resolution
No
. 25-
Page
2 SECTION
1:

The
City
Council
finds
that
the
adoption
of
this
Resolution
is
not
subject
to
the
requirements
of
the
California Environmental
Quality
Act
(CEQA)
Guidelines.

SECTION
2:

The
foregoing
recitals
are
true
and
correct.

SECTION
3:

The
following
list
of
proposed
projects
will
be
funded
in-part
or
solely
with
FY
2025-26
Road
Maintenance
and
Rehabilitation
Account
revenues
:

Project
1:

FY
2025-26
Street
Maintenance
Project
Description
:

Annual
Street
Maintenance
project
which
includes
the
slurry
sealing
of
residential,
collector,
and
arterial
streets.

Location
:

Project
will
be
performed
in
Pavement
Management
Zone
8 including
neighborhoods
in
the
south
west
section
of
the
city
that
includes
Poway
Road
and
Pomerado
Road
.

Est
imated
Useful
Life:
8 years
Project
Schedule
: July
2025
-
October
2025

SECTION
4:

The
City
has
no
previously
proposed
and
adopted
projects
that
will
utilize
FY
2025-26
Road
Maintenance
and
Rehabilitation
Account
revenues
in
their
delivery
.

PASSED,

APPROVED
AND

ADOPTED
at
a
Regular
Meeting
of
the
City
Council
of
the
City
of
Poway,
California
on
the
17th
day
of
June
, 2025
by
the
following
vote,
to
wit:

AYES: NOES: ABSTA
INED
:

ABSENT
:

DISQUALIFIED
:

Steve
Vaus,
Mayor
ATTEST: Carrie
Gallagher,
CMC,
City
Clerk
4 of
4 June 17, 2025, Item #8
DATE:

TO:

FROM:

CONTACT:

SUBJECT:

Summary:

AGENDA REPORT CityofPoway
June 17, 2025
Honorable Mayor and Members of the City Council
Julie Procopio, Director of Development Services ~
Douglas Nguyen, Assistant Engineer
(858) 668-4605 or [email protected]
Jeff Beers, Capital Projects Manager
(858) 668-4624 or [email protected]

CITY COUNCIL
Award of Contract to Payco Specialties, Inc., for the 2025-2026 Citywide Striping Project, Bid No. 25-011 and Determination the Project is Categorically Exempt from the California Environmental Quality Act (CEQA)
This action will award a construction contract for the 2025-2026 Citywide Striping project. The project includes replacing traffic striping, legends and markings and refreshing painted curbs within Street Maintenance Zone 8 and refreshing existing striping and painted curbs in Zones 2, 4 and 6. The City is divided into eight street maintenance zones.

Recommended Action:

It is recommended the City Council award the contract for the 2025-2026 Citywide Striping project to Payco Specialties, Inc. in the amount of $702,881.00 and authorize the City Manager to execute the contract (Attachment A), along with an appropriation request of $252,881 from the Gas Tax Fund (2110) into the Citywide Striping Project (ST034).

Discussion:

The 2025-2026 Citywide Striping project is part of the City's Annual Pavement Management Program.

Streets located within Street Maintenance Zone 8 that are being slurry sealed will have the striping replaced as well. Street striping in Zones 2, 4 and 6 will be refreshed (see Attachment B). Striping is refreshed every two years. The length of this contract is for one (1) year, and the work shall be coordinated with the 2024-2025 Street Overlay and 2025-2026 Street Maintenance contracts.

The contract time for this project is 40 working days with an Engineer's Estimate of $450,000.00. Bids were opened on May 14, 2025. The following two bids were received:

Company Total Bid Amount
Payco Specialties $702,881.00
Statewide Stripes $731,971.00
1 of 14
June 17, 2025, Item #8
The higher-than-expected bids for this project can be attributed, in part, to the volatile market conditions, where fluctuating material prices and labor costs have driven up overall expenses. Since the lowest bid is higher than the available budget, an additional appropriation is required.

On May 30, 2025, the City received a letter of protest from Statewide Stripes, Inc. (Attachment C), alleging discrepancies in the bid submitted by Payco Specialties, Inc., including incomplete information related to bonding, insurance, previous experience and bid security documentation. Upon review by staff and the City Attorney, these discrepancies were determined to be waivable irregularities that do not affect the responsiveness of the bid as the remainder of Payco's bid materially conforms to the terms and requirements of the bid package. The lowest responsive bidder, Payco Specialties, Inc., is recommended for the award of this contract.

Environmental Review:

The proposed striping of existing City streets with the 2025-2026 Citywide Striping project is Categorically Exempt from the California Environmental Quality Act (CEQA) as a Class 1 Categorical Exemption, pursuant to Section 15301 (c) of the CEQA Guidelines, in that the project involves maintenance of existing streets with no expansion of use.

Fiscal Impact:

Approval of this item will result in an additional appropriation of $252,881.00 from the Gas Tax Fund (2110) to the Citywide Striping Project (ST034), beyond what is included in the proposed FY2025-26 Budget. There is $500,000.00 of unencumbered funds currently included in the proposed FY2025-26 Budget programmed into the ST034 project budget. The revised budget of $752,881.00 will include the cost for the construction contract, and an additional $50,000.00 for construction contingency. The City proactively plans for street repair and replacement projects as part of the annual budget process, with the proposed FY2025-26 Budget being considered for adoption on this same June 17, 2025 agenda.

Public Notification:

None.

Attachments:

A. Construction Contract
B. Citywide Striping Project Map
C. Statewide Stripes, Inc. Letter of Protest dated May 30, 2025 Reviewed/Approved By:

We~Kaserman
Assistant City Manager
2 of 14
Reviewed By:

Alan Fenstermacher
City Attorney
Ap;r:~edL
c~
City Manager
June 17, 2025, Item #8
SECTION 8

CONSTRUCTION CONTRACT

CITY OF POWAY
2025-2026 CITYWIDE STRIPING PROJECT
This Contract made and entered into this 17th day of June 2025, by and between City of Poway, a municipal corporation of the State of California, hereinafter referred to as "City" and Payco Specialties, Inc. hereinafter referred to as "Contractor." The City and the Contractor, for the consideration hereinafter named, mutually agree as follows:

1. The complete Contract includes all of the Contract Documents, which are incorporated herein by this reference, and include:
a. This Contract
b. Contract Addenda
c. Contract Change Orders
d. Instructions to Bidders, Proposal Requirements and Conditions e. Contract Specifications
f. Contract Plans
g. General Condition
h. Special Conditions
i. Standard Specification for Public Works, most current edition

2. The Contract Documents are complementary, and that which is required by one shall be as binding as if required by all.

3. Contractor shall provide and furnish all labor, materials, necessary tools, expendable equipment, and all utility and transportation services required for the following work of improvement:

This contract includes replacement of traffic striping, legends and markings and refreshing of painted curbs within Street Maintenance Zone 8 and refreshing of existing striping and painted curbs in Zones 2, 4, and 6. The length of this contract is for one (1) year, and the work shall be coordinated with the City's Street Maintenance contract.

4. Contractor agrees to perform all the said work and furnish all the said materials at their own cost and expense that are necessary to construct and complete in strict conformance with Contract Documents and to the satisfaction of the City Engineer, 3 of 14
1 ATTACHMENT A
June 17, 2025, Item #8
the
work
hereinafter
set
forth
in
accordance
with
the
Contract
adopted
by
the
City
Council.

5. City
agrees
to
pay
and
Contractor
agrees
to
accept
in
full
payment
for
performance
of
this
work
of
improvement
as
described,
the
stipulated
sum
of
$702,881.00
the
"Contract
Price."
City
agrees
to
make
progress
payments
and
final
payment
in
accordance
with
the
method
set
forth
in
the
Special
Provisions
.

6. Contractor
agrees
to
commence
construction
of
the
work
provided
for
herein
within
Fifteen
(15)
Calendar
Days
after
the
date
specified
in
the
Notice
to
Proceed,
and
to
continue
diligently
in
strict
conformance
with
Contract
Documents
and
without
interruption,
and
to
complete
the
construction
thereof
within
Forty
(40)
Working
Days
after
the
date
specified
in
the
Notice
to
Proceed.

7. Time
is
of
the
essence
of
this
Contract,
and
it
is
agreed
that
it
would
be
impracticable or
extremely
difficult
to
ascertain
the
extent
of
actual
loss
or
damage
which
the
City
will
sustain
by
reason
of
any
delay
in
the
performance
of
this
Contract.

It
is,
therefore,
agreed
that
Contractor
will
pay
as
liquidated damages
to
the
City
the
following
sum
of
$500.00
per
Calendar
Day,
for
each
and
every
Calendar
Days
delay
in
finishing
the
Work
in
excess
of
the
number
of
Working
Days
prescribed
above.

If liquidated
damages
are
not
paid,
as
assessed
by
the
City,
the
City
may
deduct
the
amount
thereof
from
any
money
due
or
that
may
become
due
the
Contractor
under
this
Contract
in
addition
to
any
other
remedy
available
to
City.

By
executing
this
Contract,
Contractor
agrees
that
the
amount
of
liquidated
damages
is
reasonable
and
shall
not
constitute
a
penalty.

8. In
accordance
with
State
of
California
Senate
Bill
No.
854,
Contractor
will
maintain
and
will
require
all
subcontractors
to
maintain
valid
and
current
Department
of
Industrial
Relations
(DIR)
Public
Works
Contractor
registration
during
the
term
of
this
project.

Contractor
shall
notify
the
City
in
writing
immediately,
and
in
no
case
more
than
twenty-four
(24)
hours,
after
receiving
any
information
that
Contractor's
or
any
of
its
Subcontractor's
DIR
registration
status
has
been
suspended,
revoked,
expired,
or
otherwise
changed.

9. Contractor
will
pay,
and
will
require
all
subcontractors
to
pay,
all
employees
on
said
Contract
a salary
or
wage
at
least
equal
to
the
prevailing
salary
or
wage
established
for
such
work
as
set
forth
in
the
wage
determinations
and
wage
standards
applicable
to
this
work,
a
copy
of
which
is
on
file
in
the
office
of
the
City
Clerk
of
the
City
of
Poway.

Federal
prevailing
wage
rates
apply
for
federally
funded
projects.

Travel
and
subsistence
pay
shall
be
paid
in
accordance
with
Labor
Code§
1773.1.

10. Contractor
shall
be
subject
to
the
penalties
in
accordance
with
Labor
Code
of
§
1775
for
each
worker
paid
(either
by
Contractor
or
by
any
subcontractors
under
Contractor)
less
than
the
prevailing
rate
described
above
on
the
work
provided
for
in
this
Contract.
2 4
of
14 June 17, 2025, Item #8

11. Contractor
and
subcontractors
shall
comply
with
Labor
Code
§
1810
and
§
1811
which
stipulates
that
eight
hours
labor
constitutes
a
legal
day's
work,
and§
1812
which
stipulates
that
the
Contractor
and
subcontractors
shall
keep
an
accurate
record
showing
the
name
of
and
actual
hours
worked
each
calendar
day
and
each
calendar
week
by
each
worker
employed
by
them
in
connection
with
the
work
performed
under
the
terms
of
the
Contract.

Failure
to
comply
with
these
sections
of
the
Labor
Code
will
subject
the
Contractor
to
penalty
and
forfeiture
provisions
of
the
Labor
Code§
1813.

12. Contractor
will
comply
with
the
provisions
of
Labor
Code
§
1777
.5
pertaining
to
the
employment
of
apprentices
to
the
extent
applicable
to
this
Contract.

13. Contractor,
by
executing
this
Contract,
hereby
certifies:
"I
am
aware
of
and
will
comply
with
the
Labor
Code
§
3700
by
securing
payment
for
and
maintaining
in
full
force
and
effect
for
the
duration
of
the contract,
complete
Workers'
Compensation
Insurance,
and
shall
furnish
a
Certificate
of
Insurance
to
the
City
before
execution
of
the
Contract.

The
City,
its
officers,
or
employees,
will
not
be
responsible
for
any
claims
in
law
or
equity
occasioned
by
failure
of
the
Contractor
to
comply
with
this
paragraph."
Contractor
further
agrees
to
require
all
subcontractors
to
carry
Workers'
Compensation
Insurance
as
required
by
the
Labor
Code
of
the
State
of
California.

14. Contractor
shall,
concurrent
with
the
execution
of
this
Contract,
furnish
two
bonds
approved
by
the
City,
one
in
the
amount
of
One
Hundred
Percent
(100%)
of
the
Contract
Price,
to
guarantee
the
faithful
performance
of
the
work
("Performance
Bond"),
and
one
in
the
amount
of
One
Hundred
Percent
(100%)
of
the
Contract
Price
to
guarantee
payment
of
all
claims
for
labor
and
materials
furnished
("Payment
Bond").

This
Contract
shall
not
become
effective
until
such
bonds
are
supplied
to
and
approved
by
the
City.

15. a.

Contractor
shall
procure
and
maintain
at
its own
expense,
until
completion
of
5 of
14 performance,
commercial
general
liability
insurance
of
not
less
than
One
Million
Dollars
($1,000,000)
combined
single
limit
per
occurrence,
and
Two
Million
Dollars
($2,000,000)
in
the
aggregate,
for
bodily
injury,
personal
injury,
death,
loss
or
damage
resulting
from
the
wrongful
or
negligent
acts
by
the
Contractor
or
its
officers,
employees,
servants,
volunteers
and
agents
and
independent
contractors.

Contractor
shall
provide
insurance
on
an
occurrence,
not
claims-made
basis.

Contractor
acknowledges
and
agrees
that,
for
purposes
of
clarification
with
the
intention
of
avoiding
gaps
in
coverage
with
any
umbrella
or
excess
insurance,
personal
and
advertising
injury
coverage
shall
be
triggered
by
an
"offense"
while
bodily
injury
and
property
damage
coverage
shall
be
triggered
by
an
"occurrence"
during
the
policy
period.
b.

Contractor
shall
further
procure
and
maintain
at
its
own
expense,
until
completion
of
performance,
commercial
vehicle
liability
insurance
covering
personal
3 June 17, 2025, Item #8
6 of
14 injury
and
property
damage,
of
not
less
than
One
Million
Dollars
($1,000,000)
combined
single
limit
per
occurrence,
and
Two
Million
Dollars
($2,000,000)
in
the
aggregate,
covering
any
vehicle
utilized
by
Contractor
or
its
officers,
employees
,
servants,
volunteers
and
agents
and
independent
contractors
in
performing
the
services
required
by
this
Agreement.
c.

Contractor
shall
further
procure
and
maintain
at
its
expense,
until
completion
of
performance
, workers'
compensation
insurance
providing
coverage
as
required
by
the
California
State
Workers'
Compensation
Law.

If
any
class
of
employees
employed
by
the
Contractor
pursuant
to
this
Agreement
is
not
protected
by
the
California
State
Workers'
Compensation
Law,
Contractor
shall
provide
adequate
insurance
for
the
protection
of
such
employees
to
the
satisfaction
of
the
City
. This
provision
shall
not
apply
if Contractor
has
no
employees
performing
work
under
this
Agreement.

Contractor
agrees
to
waive
its
statutory
immunity
under
arty
worker's
compensation
or
similar
statute,
as
respecting
the
City,
and
to
require
any
and
all
subcontractors
and
any
other
person
or
entity
involved
with
the
Project
to
do
the
same. Worker's
Compensation
Insurance
:
o
Contractor
has
no
employees
and
is
exempt
from
workers'
compensation
requirements
.
o
Contractor
carries
workers
' compensation
insurance
for
all
employees.
d.

All
policies
required
by
this
section
shall
be
secured
from
insurers
authorized
to
do
business
in
the
State
of
California
with
an
"A"
policyholder's
rating
or
better
and
a
financial
rating
of
at
least
Class
VII,
in
accordance
with
the
current
Best's
Ratings
.
e.

Contractor
agrees
to
require
that
all
parties,
including
but
not
limited
to
subcontractors,
architects,
engineers
or
others
with
whom
Contractor
enters
into
contracts
or
whom
Contractor
hires
or retains
pursuant
to
or
in
any
way
related
to
the
performance
of
this
Agreement,
provide
the
insurance
coverage
required
herein,
at
minimum,
and,
except
for
worker's
compensation
coverage,
name
as
additional
insureds
the
parties
to
this
Agreement.

Contractor
agrees
to
monitor
and
review
all
such
coverage
and
assumes
all
responsibility
for
ensuring
that
such
coverage
is
provided
in
conformity
with
the
requirements
of
this
Section.
f.

In
the
event
this
Agreement
is
terminated
for
any
reason
prior
to
the
completion of
all
obligations
and
requirements
of
this
Agreement,
Contractor
agrees
to
maintain
all
coverages
required
herein
until
the
City
provides
written
authorization
to
terminate
the
coverages
following
the
City's
review
and
determination
that
all
liability
posed
under
this
Agreement
as
to
the
party
providing insurance
has
been
eliminated. g.

Contractor
agrees
and
acknowledges
that
if
it
fails
to
obtain
all
of
the
insurance
requ
ired
in
this
Agreement
in
accordance
with
the
requirements
herein,
or
to
obtain
and
ensure
that
the
coverage
required
herein
is
maintained
by
any
subcontractors
or
others
involved
in
any
way
with
the
Project
, Contractor
shall
be
4 June 17, 2025, Item #8
responsible for any losses, claims, suits, damages, defense obligations, or liability of any kind or nature attributable to the City, and/or its officers, employees, servants, volunteers, agents and independent contractors, that result from such failure by Contractor.

16. a. Contractor shall provide certificates of insurance with original endorsements to the City as evidence of the insurance coverage required herein. Certificates of such insurance shall be filed with the City on or before commencement of performance of this Agreement. Current certification of insurance shall be kept on file with the City at all times until completion of performance and acceptance by the City.
b. Notwithstanding any inconsistent statement in any required insurance policies or any subsequent endorsements attached thereto, the commercial general liability and commercial vehicle liability policies shall bear endorsements whereby it is provided that the City, and its officers, employees, servants, volunteers, agents and independent contractors are named as additional insureds. Additional insureds shall be entitled to the full benefit of all insurance policies in the same manner and to the same extent as any other insureds and there shall be no limitation to the benefits conferred upon them other than policy limits to coverages. c. Contractor shall require the carriers of all required insurance policies to waive all rights of subrogation against the City, and its officers, employees, servants, volunteers, agents and independent contractors.
d. Each policy required herein must be endorsed to provide that the policy shall not be cancelled in coverage or limits (except by paid claims) unless the insurer has provided the City with 30 days prior written notice of cancellation. Contractor agrees to provide the City with 30 days written notice prior to any non-renewal or reduction in coverage or limits.
e. All insurance policies required to be provided by Contractor or any other party must be endorsed to provide that the policies shall apply on a primary and noncontributing basis in relation to any insurance or self-insurance, primary or excess, maintained or available to the City, and its officers, employees, servants, volunteers, agents and independent contractors.

17. a. Contractor shall defend, indemnify and hold harmless the City, its officers, 7 of 14
officials, agents, employees and volunteers from and against any and all claims, demands, actions, losses, damage, injuries, and liability, direct or indirect (including any and all costs and expenses in connection therewith) to the extent actually caused by the negligence of Contractor, Contractor's employees, subcontractors or independent contractors except for any such claim arising out of the negligence or willful misconduct of the City, or its officers, agents, employees or volunteers. b. The City does not, and shall not, waive any rights that it may have against Contractor under this Section because of the acceptance by the City, or the deposit with the City, of any insurance policy or certificate required pursuant to this Agreement. The hold harmless, indemnification and duty to defend provisions of this 5 June 17, 2025, Item #8
Section shall apply regardless of whether or not said insurance policies are determined to be applicable to the claim, demand, action, damage, liability, loss, cost or expense described herein.

18. Any amendments to any of the Contract Documents, including but not limited to Contract Change Orders, must be in writing executed by the Contractor and the City. Any time an approval, time extension, or consent of the City is required under the Contract Documents, such approval, extension, or consent must be in writing in order to be effective.

19. The Contract Documents contain all of the agreements and understandings of the parties and all previous understandings, negotiations, and contracts are integrated into and superseded by this Contract.

20. In the event that any one or more of the phrases, sentences, clauses, paragraphs, or sections contained in this Contract shall be declared invalid or unenforceable by a valid judgment or decree of a court of competent jurisdiction, such invalidity or unenforceability shall not affect any of the remaining phrases, sentences, clauses, paragraphs, or sections of this Contract which are hereby declared as severable and shall be interpreted to carry out the intent of the parties hereunder.

21. The persons executing this Contract on behalf of the parties hereto warrant that they are duly authorized to execute this Contract on behalf of said parties and that, by so executing this Contract, the parties hereto are formally bound to the provisions of this Contract.

22. This Contract shall be binding upon and shall inure to the benefit of the parties hereto and their respective heirs, personal representatives, successors, and assigns.

23. In performing its obligations and duties under this Contract, each party shall comply with all applicable local, state, and federal laws, regulations, rules, standards and ordinances.

24. This Contract may be executed by the parties in counterparts, which counterparts shall be construed together and have the same effect as if all of the parties had executed the same instrument.

25. After completion of the work contemplated by this Contract, Contractor shall file with the City Manager an affidavit stating that all workers and persons employed, all firms supplying materials, and all subcontractors upon the project have been paid in full, and that there are no claims outstanding against the project for either labor or materials, except certain items, if any, to be set forth in an affidavit covering disputed claims or items in connection with a Stop Notice that has been filed under the provision of the laws of the State of California.

26. All work shall be subject to inspection and testing by City and its authorized representatives during manufacture and construction and all other times and places, including, without limitation, the plans of Contractor and any of its suppliers.

Contractor shall provide all reasonable facilities and assistance for the safety and 6 8 of 14
June 17, 2025, Item #8
convenience of inspectors. All inspections and tests shall be performed in such manner as to not unduly delay the work. The Work shall be subject to final inspection and acceptance notwithstanding any payments or other prior inspections.

Such final inspection shall be made within a reasonable time after completion of the work.

27. Whenever Contractor has knowledge that any actual or potential labor dispute is delaying or threatens to delay the timely performance of the Contract, Contractor shall immediately give notice thereof, including all relevant information with respect thereto, to City.

28. Contractor agrees to contact the appropriate regional notification center in accordance with Government Code Section 4216.2.

29. Contractor shall submit its detailed plan for worker protection during the excavation of trenches required by the scope of the work in accordance with Labor Code Section 6705.

30. a. Contractor shall, without disturbing the condition, notify City, in writing, as 9 of 14
soon as Contractor, or any of Contractor's subcontractors, agents, or employees have knowledge and reporting is possible, of the discovery of any of the following conditions:
i. The presence of any material that Contractor believes is hazardous waste, as defined in Section 25117 of the Health and Safety Code;
ii. Subsurface or latent physical conditions at the site differing from those indicated in the specifications; or
iii. Unknown physical conditions at the site of any unusual nature, different materially for those ordinarily encountered and generally recognized as inherent in work of the character provided for in this Contract.
b. 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. c. City shall promptly investigate the reported conditions. If City, through 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 Contractor's cost of, or time required for, performance of any part of the work, then City shall issue a change order.
d. 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 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 7 June 17, 2025, Item #8
retain
any
and
all
rights
that
pertain
to
the
resolution
of
disputes
and
protests
between
the
parties.
31 .

This
Contract
is
to
be
governed
by
the
laws
of
the
State
of
California
.

32. All
work
shall
be
guaranteed
for
a
period
of
one
(1)
year
from
the
date
of
acceptance
by
the
City.

Contractor
shall
promptly
make
all
needed
repairs
arising
out
of
defective
materials,
workmanship,
and
equipment.

City
is
hereby
authorized
to
make
such
repairs
if within
ten
(10)
days
after
giving
written
notice
to
Contractor,
or
its
agent,
Contractor
should
fail
to
make
or
undertake
with
due
diligence
the
aforesaid
repairs;
provided,
however,
that
in
case
of
an
emergency
, where,
in
the
opinion
of
City
, delay
would
cause
serious
loss
or
damage,
repairs
may
be
made
without
notice
being
sent
to
Contractor,
and
Contractor
shall
pay
the
costs
thereof.
(Remainder
of
page
intentionally
left
blank)
8 10
of
14 June 17, 2025, Item #8
IN WITNESS WHEREOF, the said Contractor and the City Manager, City Clerk and City Attorney have caused the names of said parties to be affixed hereto, the day and year first above written.

Contractor's Name:

Payco Specialties, Inc.

Print Name of Construction Company
By: -------------
Signature
Glenn Brewer
Print Name
Contractor information:

Address for Notices and Payments
120 N Second Ave
Chula Vista, CA 91910
Telephone Number: 619-422-9204
Email: [email protected]
ATTEST:

Carrie Gallagher, CMC, City Clerk
APPROVED AS TO FORM:

RUTAN & TUCKER, LLP
Alan Fenstermacher, City Attorney
11 of 14

CITY OF POWAY
a Municipal Corporation
Chris Hazeltine, City Manager
9 June 17, 2025, Item #8
Legend
--Zone 1-NO WORK --Zone 2-REFRESH EXISTING STRIPING
--Zone 3-NO WORK --Zone 4-REFRESH EXISTING STRIPING
--Zone 5-NO WORK --Zone 6-REFRESH EXISTING STRIPING
Zone 7-NO WORK ::::JCII Zone S..REPLACE EXISTING STRIPING c:J Poway City Boundary

UNLESS OTHERWISE NOTED
12 of 14 ATTACHMENT B
2025-2026

CITYWIDE STRIPING

PROJECT MAP
June 17, 2025, Item #8
May
30,
2025
City
of
Poway
CA
Lie.
#788286
Since
1990
Attn:

Douglas
Nguyen,
Assistant
Engineer
13325
Civic
Center
Drive
Poway,
Ca
92064
Re:

Letter
of
Protest
Bid
No.
25-011
202
5 -
2026
Citywide
Striping
Project
Dear
Mr.

Nguyen,
We
would
like
to
formally
protest
the
bid
results
for
the
apparent
low
bidder,
Payco
Specialties,
Inc.
for
Bid
No.
25-01
l.

Project
named:
2025
-
2026
Citywide
Striping
Project.

After
review
of
their
bid
documents
for
the
referenced
bid,
we
found
their
bid
to
be
incomplete
due
to
the
following
discrepancies.
l.

Per
Section
9,
Proposal
-
background
information
-
Part
II
-
Bonding

24. -
page
51,
Documentation
was
supposed
to
be
provided
from
the
Surety
identifying,
the
Name
of
bonding
company/
surety,
The
surety
agent,
address
and
telephone
number.

There
was
nothing
provided
from
the
surety
and
only
a
name
was
listed
on
the
bid
documents.

2. Per
section
9,
Proposal
-
background
information
-
Part
II
-
#33
-
page
53,
"If
"No",
please
provide
a
statement
by
your
current
workers'
compensation
insurance
carrier
that
verifies
periods
of
workers'
compensation
insurance
coverage
for
the
last
five
years."
BONDED
•

INSURED
•
LIC#
788286
•
DBE#32232
•
MBE/SBE#
40421
SLBE#l0SS0008
P.O
.

Box
900287
•
San
Diego,
CA
92190
13 of
14 ( 8 5
8)
5 6 0
. 6 8 8 7
cPfTfTj~MENT
f
5 8)
5 6

0. 0 l 5 8
Fax
June 17, 2025, Item #8
CA
Uc.
#788286
Since
1990
There
was
no
letter
accompanying
their
bid
from
their
current
insurance
carrier,
providing
the
required
information
per
the
bid
request.

3. Per
Section
9 -
Part
Ill
-
Previous
experience,
page

57. Project
Three
has
nothing
listed.

4. Per
Section
9 -
Bid
Security
bond
or
check,
Page

63. Payee
Specialties,
Inc.
did
not
fill
out
the
top
section
of
the
page
indicating
if
a
bid
bond
or
a
certified
check
would
be
provided.

5. Per
Page
65 of
the
bid
bond
form,
attach
acknowledgement.

There
was
no
acknowledgement
attached
for
the
principal's
signature
for
Payee
Specialties,
Inc.

As
clearly
stated
in
the
specifications,
these
documents
were
supposed
to
be
included
in
the
bid.

Therefore,
their
bid
is
incomplete
and
cannot
be
deemed
responsive.

If
these
items
are
not
required
for
the
contract
to
be
awarded,
then
why
are
they
in
the
bid
documents
and
responsive
bidders,
like
us
who
do
our
due
diligence
in
completing
the
bid
package
per
the
requested
items.

This
is
an
unfair
advantage
and
bias
to
the
contractor
who
doesn't
do
their
due
diligence.

Please
let
us
know
what
the
next
step
is
in
the
process.

Thank
you
for
your
time
and
consideration
to
this
matter.

Sincerely,
~
U:)
/~/'U,,----r'-
'
-f--,,==,,.__
David
Brilhante
President
BONDED
•

INSURED
•
LIC#
788286
•
DBE#32232
•
MBE/SBE#
40421
SLBE#l0SS0008
P.O
.

Box
900287
•
San
Diego,
CA
92190
14 of
14 (858)
560.6887
Office
(858)
560.01
58 Fax
June 17, 2025, Item #9
DATE:

TO:

FROM:

CONTACT:

SUBJECT:

Summary:

AG EN DA REPORT City of Poway
June 17, 2025
Honorable Mayor and Members of the City Council
Julie Procopio, Director of Development Serviceq
Douglas Nguyen, Assistant Engineer
(858) 668-4605 or [email protected]
Jeff Beers, Capital Projects Manager
(858) 668-4624 or [email protected]

CITY COUNCIL
Award of Contract to Pavement Coatings Co., for the 2025-2026 Street Maintenance Project Bid No. 25-012 and Determination the Project is Categorically Exempt from the California Environmental Quality Act (CEQA)
This action will award a construction contract for the 2025-2026 Street Maintenance project. The project includes slurry sealing of residential and arterial streets in Street Maintenance Zone 8. The City is divided into eight street maintenance zones. Annually, the City completes maintenance within a zone for an eight-year rotational street maintenance program.

Recommended Action:

It is recommended the City Council award the contract for the 2025-2026 Street Maintenance project to Pavement Coatings Co. in the amount of $1,125,354.48 and authorize the City Manager to execute the contract (Attachment A).

Discussion:

The 2025-2026 Street Maintenance project is part of the City's Annual Pavement Management Program. Streets included with this project are located within Zone 8, which encompasses residential and arterial streets including Poway Road from the western city limits to Community Road, Pomerado Road from Poway Road to the southern city limits, Scripps Poway Parkway from the western city limits to Pomerado Road and Ted Williams Parkway from the western city limits to Pomerado Road. The project also includes raising survey monuments, water valve cans and sewer manhole lids to grade.

This work in Zone 8 is being coordinated with the 2024-2025 Annual Street Overlay and 2025-2026 Citywide Striping contracts.

The contract time for this project is 45 working days with an Engineer's Estimate of $1,400,000. Bids were opened on May 15, 2025. The following bids were received:
1 of 22
June 17, 2025, Item #9
Company
Total
Bid
Amount
Pavement
Coatings
Co.
$1,
125,354.48
American
Asphalt
South,
Inc.
$1,278,278.76
Union
Pavement
Services
$1,442,262.84
The
lowest
responsive
bidder,
Pavement
Coatings
Co.,
is
recommended
for
the
award
of
this
contract.

Environmental
Review:

The
proposed
slurry
sealing
of
existing
City
streets
with
the
2025-2026
Street
Maintenance
project
is
Categorically
Exempt
from
the
California
Environmental
Quality
Act
(CEQA)
as
a
Class
1 Categorical
Exemption,
pursuant
to
Section
15301
(c)
of
the
CEQA
Guidelines,
in
that
the
project
involves
maintenance
of
existing
streets
with
no
expansion
of
use.

Fiscal
Impact:

Sufficient
funds
have
been
programmed
in
the
Street
Maintenance
project
account
(ST032)
in
the
Proposed
Fiscal
Year
(FY)
2025-26
budget
being
considered
by
City
Council
for
adoption
on
this
same
June
17,
2025
agenda,
with
funding
included
from
various
streets
related
funds
(Road
Maintenance
And
Repair
-
2120,
Transnet
30%
-2240,
and
Gas
Tax
-2110).

This
contract
will
be
executed
upon
adoption
of
the
Proposed
FY
2025-26
budget.

The
City
proactively
plans
for
street
repair
and
replacement
projects
as
part
of
the
annual
budget
process.

Public
Notification:

None. Attachments: A.

Construction
Contract
B.

Zone
8 Street
Maintenance
Map
Reviewed/Approved
By:

W~
d
a;-erman
Assistant
City
Manager
2 of
22 Reviewed
By:

Alan
Fenstermacher
City
Attorney
Chris
Hazeltine
City
Manager
June 17, 2025, Item #9

SECTION
8 CONSTRUCTION

CONTRACT
CITY
OF
POWAY
2025-2026
STREET

MAINTENANCE

PROJECT
This
Contract
made
and
entered
into
this
17th
day
of
June
2025,
by
and
between
City
of
Poway,
a
municipal
corporation
of
the
State
of
California,
hereinafter
referred
to
as
"City"
and
Pavement
Coatings
Co.
hereinafter
referred
to
as
"Contractor."
The
City
and
the
Contractor,
for
the
consideration
hereinafter
named,
mutually
agree
as
follows: 1.

The
complete
Contract
includes
all
of
the
Contract
Documents,
which
are
incorporated
herein
by
this
reference,
and
include:
a.

This
Contract
b.

Contract
Addenda
c.

Contract
Change
Orders
d.

Instructions
to
Bidders,
Proposal
Requirements
and
Conditions
e.

Contract
Specifications
f.

Contract
Plans
g.

General
Condition
h.

Special
Conditions
i.

Standard
Specification
for
Public
Works,
most
current
edition

2. The
Contract
Documents
are
complementary,
and
that
which
is
required
by
one
shall
be
as
binding
as
if required
by
all.

3. Contractor
shall
provide
and
furnish
all
labor,
materials, necessary
tools,
expendable
equipment,
and
all
utility
and
transportation
services
required
for
the
following
work
of
improvement:

The
2025-2026
Street
Maintenance
is
part
of
the
City's
Annual
Pavement
Management
Program.

Streets
are
located
within
Zone
8,
which
encompasses
residential
and
arterial
streets
including
Poway
Road,
Pomerado
Road,
Scripps
Poway
Parkway
and
Ted
Williams
Parkway.

The
project
also
includes
raising
survey
monuments,
water
valve
cans
and
sewer
manhole
lids
to
grade.

4. Contractor
agrees
to
perform
all
the
said
work
and
furnish
all
the
said
materials
at
their
own
cost
and
expense
that
are
necessary
to
construct
and
complete
in
strict
conformance
with
Contract
Documents
and
to
the
satisfaction
of
the
City
Engineer,
3 of
22 1

ATTACHMENT
A
June 17, 2025, Item #9
the work hereinafter set forth in accordance with the Contract adopted by the City Council.

5. City agrees to pay and Contractor agrees to accept in full payment for performance of this work of improvement as described, the stipulated sum of $1,125,354.48 the "Contract Price."
City agrees to make progress payments and final payment in accordance with the method set forth in the Special Provisions.

6. Contractor agrees to commence construction of the work provided for herein within Fifteen (15) Calendar Days after the date specified in the Notice to Proceed, and to continue diligently in strict conformance with Contract Documents and without interruption, and to complete the construction thereof within 45 Working Days after the date specified in the Notice to Proceed.

7. Time is of the essence of this Contract, and it is agreed that it would be impracticable or extremely difficult to ascertain the extent of actual loss or damage which the City will sustain by reason of any delay in the performance of this Contract. It is, therefore, agreed that Contractor will pay as liquidated damages to the City the following sum of $500.00 per Calendar Day, for each and every Calendar Days delay in finishing the Work in excess of the number of Working Days prescribed above. If liquidated damages are not paid, as assessed by the City, the City may deduct the amount thereof from any money due or that may become due the Contractor under this Contract in addition to any other remedy available to City.

By executing this Contract, Contractor agrees that the amount of liquidated damages is reasonable and shall not constitute a penalty.

8. In accordance with State of California Senate Bill No. 854, Contractor will maintain and will require all subcontractors to maintain valid and current Department of Industrial Relations (DIR) Public Works Contractor registration during the term of this project. Contractor shall notify the City in writing immediately, and in no case more than twenty-four (24) hours, after receiving any information that Contractor's or any of its Subcontractor's DIR registration status has been suspended, revoked, expired, or otherwise changed.

9. Contractor will pay, and will require all subcontractors to pay, all employees on said Contract a salary or wage at least equal to the prevailing salary or wage established for such work as set forth in the wage determinations and wage standards applicable to this work, a copy of which is on file in the office of the City Clerk of the City of Poway. Federal prevailing wage rates apply for federally funded projects.

Travel and subsistence pay shall be paid in accordance with Labor Code § 1773.1.

10. Contractor shall be subject to the penalties in accordance with Labor Code of § 1775 for each worker paid (either by Contractor or by any subcontractors under Contractor) less than the prevailing rate described above on the work provided for in this Contract.
2 4 of 22
June 17, 2025, Item #9

11. Contractor
and
subcontractors
shall
comply
with
Labor
Code
§
1810
and
§
1811
which
stipulates
that
eight
hours
labor
constitutes
a
legal
day's
work,
and§
1812
which
stipulates
that
the
Contractor
and
subcontractors
shall
keep
an
accurate
record
showing
the
name
of
and
actual
hours
worked
each
calendar
day
and
each
calendar
week
by
each
worker
employed
by
them
in
connection
with
the
work
performed
under
the
terms
of
the
Contract.

Failure
to
comply
with
these
sections
of
the
Labor
Code
will
subject
the
Contractor
to
penalty
and
forfeiture
provisions
of
the
Labor
Code
§
1813.

12. Contractor
will
comply
with
the
provisions
of
Labor
Code§
1777
.5
pertaining
to
the
employment
of
apprentices
to
the
extent
applicable
to
this
Contract.

13. Contractor,
by
executing
this
Contract,
hereby
certifies:
"I
am
aware
of
and
will
comply
with
the
Labor
Code
§
3700
by
securing
payment
for
and
maintaining
in
full
force
and
effect
for
the
duration
of
the
contract,
complete
Workers'
Compensation
Insurance,
and
shall
furnish
a
Certificate
of
Insurance
to
the
City
before
execution
of
the
Contract.

The
City,
its
officers,
or
employees,
will
not
be
responsible
for
any
claims
in
law
or
equity
occasioned
by
failure
of
the
Contractor
to
comply
with
this
paragraph."
Contractor
further
agrees
to
require
all
subcontractors
to
carry
Workers'
Compensation
Insurance
as
required
by
the
Labor
Code
of
the
State
of
California.

14. Contractor
shall,
concurrent
with
the
execution
of
this
Contract,
furnish
two
bonds
approved
by
the
City,
one
in
the
amount
of
One
Hundred
Percent
(100%)
of
the
Contract
Price,
to
guarantee
the
faithful
performance
of
the
work
("Performance
Bond"),
and
one
in
the
amount
of
One
Hundred
Percent
(100%)
of
the
Contract
Price
to
guarantee
payment
of
all
claims
for
labor
and
materials
furnished
("Payment
Bond").

This
Contract
shall
not
become
effective
until
such
bonds
are
supplied
to
and
approved
by
the
City.

15. a.

Contractor
shall
procure
and
maintain
at
its
own
expense,
until
completion
of
5 of
22 performance,
commercial
general
liability
insurance
of
not
less
than
One
Million
Dollars
($1,000,000)
combined
single
limit
per
occurrence,
and
Two
Million
Dollars
($2,000,000)
in
the
aggregate,
for
bodily
injury,
personal
injury,
death,
loss
or
damage
resulting
from
the
wrongful
or
negligent
acts
by
the
Contractor
or
its
officers,
employees,
servants,
volunteers
and
agents
and
independent
contractors.

Contractor
shall
provide
insurance
on
an
occurrence,
not
claims-made
basis.

Contractor
acknowledges
and
agrees
that,
for
purposes
of
clarification
with
the
intention
of
avoiding
gaps
in
coverage
with
any
umbrella
or
excess
insurance,
personal
and
advertising
injury
coverage
shall
be
triggered
by
an
"offense"
while
bodily
injury
and
property
damage
coverage
shall
be
triggered
by
an
"occurrence"
during
the
policy
period.
b.

Contractor
shall
further
procure
and
maintain
at
its
own
expense,
until
completion
of
performance,
commercial
vehicle
liability
insurance
covering
personal
3 June 17, 2025, Item #9
6 of
22 injury
and
property
damage,
of
not
less
than
One
Million
Dollars
($1,000,000)
combined
single
limit
per
occurrence,
and
Two
Million
Dollars
($2,000,000)
in
the
aggregate,
covering
any
vehicle
utilized
by
Contractor
or
its
officers,
employees,
servants,
volunteers
and
agents
and
independent
contractors
in
performing
the
services
required
by
this
Agreement.
c.

Contractor
shall
further
procure
and
maintain
at
its
expense,
until
completion
of
performance
, workers'
compensation
insurance
providing
coverage
as
required
by
the
California
State
Workers'
Compensation
Law.

If
any
class
of
employees
employed
by
the
Contractor
pursuant
to
this
Agreement
is
not
protected
by
the
California
State
Workers'
Compensation
Law,
Contractor
shall
provide
adequate
insurance
for
the
protection
of
such
employees
to
the
satisfaction
of
the
City.

This
provision
shall
not
apply
if Contractor
has
no
employees
performing
work
under
this
Agreement.

Contractor
agrees
to
waive
its
statutory
immunity
under
any
worker's
compensation
or
similar
statute,
as
respecting
the
City,
and
to
require
any
and
all
subcontractors
and
any
other
person
or
entity
involved
with
the
Project
to
do
the
same. Worker's
Compensation
Insurance:
o
Contractor
has
no
employees
and
is
exempt
from
workers'
compensation
requirements.
o
Contractor
carries
workers'
compensation
insurance
for
all
employees
.
d.

All
policies
required
by
this
section
shall
be
secured
from
insurers
authorized
to
do
business
in
the
State
of
California
with
an
"A"
policyholder's
rating
or
better
and
a
financial
rating
of
at
least
Class
VII,
in
accordance
with
the
current
Best's
Ratings
.
e.

Contractor
agrees
to
require
that
all
parties,
including
but
not
limited
to
subcontractors
, architects,
engineers
or
others
with
whom
Contractor
enters
into
contracts
or
whom
Contractor
hires
or
retains
pursuant
to
or
in
any
way
related
to
the
performance
of
this
Agreement,
provide
the
insurance
coverage
required
herein,
at
minimum,
and,
except
for
worker's
compensation
coverage,
name
as
additional
insureds
the
parties
to
this
Agreement.

Contractor
agrees
to
monitor
and
review
all
such
coverage
and
assumes
all
responsib
ility
for
ensuring
that
such
coverage
is
provided
in
conformity
with
the
requirements
of
this
Section.
f.

In
the
event
this
Agreement
is
terminated
for
any
reason
prior
to
the
completion
of
all
obligations
and
requirements
of
this
Agreement
, Contractor
agrees
to
maintain
all
coverages
required
herein
until
the
City
provides
written
authorization
to
terminate
the
coverages
following
the
City's
review
and
determination
that
all
liability
posed
under
this
Agreement
as
to
the
party
providing
insurance
has
been
eliminated. g.

Contractor
agrees
and
acknowledges
that
if
it
fails
to
obtain
all
of
the
insurance
required
in
this
Agreement
in
accordance
with
the
requirements
herein,
or
to
obtain
and
ensure
that
the
coverage
required
herein
is
maintained
by
any
subcontractors
or
others
involved
in
any
way
with
the
Project,
Contractor
shall
be
4 June 17, 2025, Item #9
responsible for any losses, claims, suits, damages, defense obligations, or liability of any kind or nature attributable to the City, and/or its officers, employees, seNants, volunteers, agents and independent contractors, that result from such failure by Contractor.

16. a. Contractor shall provide certificates of insurance with original endorsements to the City as evidence of the insurance coverage required herein. Certificates of such insurance shall be filed with the City on or before commencement of performance of this Agreement. Current certification of insurance shall be kept on file with the City at all times until completion of performance and acceptance by the City.
b. Notwithstanding any inconsistent statement in any required insurance policies or any subsequent endorsements attached thereto, the commercial general liability and commercial vehicle liability policies shall bear endorsements whereby it is provided that the City, and its officers, employees, servants, volunteers, agents and independent contractors are named as additional insureds. Additional insureds shall be entitled to the full benefit of all insurance policies in the same manner and to the same extent as any other insureds and there shall be no limitation to the benefits conferred upon them other than policy limits to coverages. c. Contractor shall require the carriers of all required insurance policies to waive all rights of subrogation against the City, and its officers, employees, seNants, volunteers, agents and independent contractors.
d. Each policy required herein must be endorsed to provide that the policy shall not be cancelled in coverage or limits (except by paid claims) unless the insurer has provided the City with 30 days prior written notice of cancellation. Contractor agrees to provide the City with 30 days written notice prior to any non-renewal or reduction in coverage or limits.
e. All insurance policies required to be provided by Contractor or any other party must be endorsed to provide that the policies shall apply on a primary and noncontributing basis in relation to any insurance or self-insurance, primary or excess, maintained or available to the City, and its officers, employees, seNants, volunteers, agents and independent contractors.

17. a. Contractor shall defend, indemnify and hold harmless the City, its officers, 7 of 22
officials, agents, employees and volunteers from and against any and all claims, demands, actions, losses, damage, injuries, and liability, direct or indirect (including any and all costs and expenses in connection therewith) to the extent actually caused by the negligence of Contractor, Contractor's employees, subcontractors or independent contractors except for any such claim arising out of the negligence or willful misconduct of the City, or its officers, agents, employees or volunteers. b. The City does not, and shall not, waive any rights that it may have against Contractor under this Section because of the acceptance by the City, or the deposit with the City, of any insurance policy or certificate required pursuant to this Agreement. The hold harmless, indemnification and duty to defend provisions of this 5 June 17, 2025, Item #9
Section shall apply regardless of whether or not said insurance policies are determined to be applicable to the claim, demand, action, damage, liability, loss, cost or expense described herein.

18. Any amendments to any of the Contract Documents, including but not limited to Contract Change Orders, must be in writing executed by the Contractor and the City. Any time an approval, time extension, or consent of the City is required under the Contract Documents, such approval, extension, or consent must be in writing in order to be effective.

19. The Contract Documents contain all of the agreements and understandings of the parties and all previous understandings, negotiations, and contracts are integrated into and superseded by this Contract.

20. In the event that any one or more of the phrases, sentences, clauses, paragraphs, or sections contained in this Contract shall be declared invalid or unenforceable by a valid judgment or decree of a court of competent jurisdiction, such invalidity or unenforceability shall not affect any of the remaining phrases, sentences, clauses, paragraphs, or sections of this Contract which are hereby declared as severable and shall be interpreted to carry out the intent of the parties hereunder.

21. The persons executing this Contract on behalf of the parties hereto warrant that they are duly authorized to execute this Contract on behalf of said parties and that, by so executing this Contract, the parties hereto are formally bound to the provisions of this Contract.

22. This Contract shall be binding upon and shall inure to the benefit of the parties hereto and their respective heirs, personal representatives, successors, and assigns.

23. In performing its obligations and duties under this Contract, each party shall comply with all applicable local, state, and federal laws, regulations, rules, standards and ordinances.

24. This Contract may be executed by the parties in counterparts, which counterparts shall be construed together and have the same effect as if all of the parties had executed the same instrument.

25. After completion of the work contemplated by this Contract, Contractor shall file with the City Manager an affidavit stating that all workers and persons employed, all firms supplying materials, and all subcontractors upon the project have been paid in full, and that there are no claims outstanding against the project for either labor or materials, except certain items, if any, to be set forth in an affidavit covering disputed claims or items in connection with a Stop Notice that has been filed under the provision of the laws of the State of California.

26. All work shall be subject to inspection and testing by City and its authorized representatives during manufacture and construction and all other times and places, including, without limitation, the plans of Contractor and any of its suppliers.

Contractor shall provide all reasonable facilities and assistance for the safety and 6 8 of 22
June 17, 2025, Item #9
convenience
of
inspectors.

All
inspections
and
tests
shall
be
performed
in
such
manner
as
to
not
unduly
delay
the
work.

The
Work
shall
be
subject
to
final
inspection
and
acceptance
notwithstanding
any
payments
or
other
prior
inspections.

Such
final
inspection
shall
be
made
within
a
reasonable
time
after
completion
of
the
work.

27. Whenever
Contractor
has
knowledge
that
any
actual
or
potential
labor
dispute
is
delaying
or
threatens
to
delay
the
timely
performance
of
the
Contract,
Contractor
shall
immediately
give
notice
thereof,
including
all
relevant
information
with
respect
thereto,
to
City.